News and Analysis • Volume 12 • Number 3 • May 2008
EU-Korea Update
The seventh round of free trade negotiations between the EU and South Korea ended on 15 May with negotiators aiming conclude the agreement within the year.
The two sides made progress on various ‘behind the border’ issues, such as standards and certification requirements. Seoul also indicated its willingness to consider the EU’s request for enhanced protection of geographical indications for products such as champagne and Parma ham.
On rules of origin, Brussels is expected to propose a compromise in response to Korea’s demand that the EU reduce the percentage of a product that must be made in Korea before it can qualify for lower tariffs under the FTA.
Despite the differences remaining on rules of origin and services trade, as well as Korea’s tariffs and non-tariff barriers in the automotive and electronics sectors, Europe’s chief negotiator, Ignacio Garcia Bercero, said that both sides were “convinced that on the basis of the progress made during this round that it is feasible and desirable to conclude the EU-Korea FTA negotiations during the course of 2008.”
Officials said that the next round would be scheduled only when it was felt that an agreement may be reached. Meanwhile, the EU and South Korea will continue dialogue at other levels. A meeting between the EU Trade Commissioner and chief negotiator Peter Mandelson and the Korean Trade Minister, Kim Jong-hoon is expected soon.
South Korea has previously negotiated free trade deals with Chile, Singapore, the European Free Trade Association and a partial agreement with the Association of Southeast Asian Nations. Approval of an agreement with the Unites States is yet to be considered by the US Congress. The FTA with the EU would be South Korea’s largest so far.