Korea Concludes FTA with EU as U.S. Continues to Stall
October 16, 2009
World Trade\Interactive
South Korea signed Oct. 14 a free trade agreement with the European Union, a pact press sources call the world’s biggest since NAFTA. Observers say the FTA shows that Korea is moving ahead with trade liberalization efforts despite the lack of U.S. action to implement an FTA it signed with Korea in 2007. The Korea-EU agreement is expected to take effect, following final approval by the Korean legislature and EU member governments, in the latter half of 2010.
The Korea-EU FTA provides for the elimination of tariffs on 99% of two-way trade within five years. According to the European Commission, the agreement also tackles non-tariff barriers such as regulations and standards, and there will be increased transparency on regulatory issues such as intellectual property rights, government procurement, competition policy and sustainable development. In addition, the FTA will provide duty-free treatment for goods made in the joint industrial complex in the North Korean border city of Kaesong.
The signing of the Korea-EU FTA comes as the U.S. continues to delay implementation of its own FTA with Korea. Opponents of that agreement want greater access to the Korean beef and automobile markets, and the Obama administration has said little about how those concerns could be addressed in order to move the FTA forward. An AFP article cited Assistant U.S. Trade Representative Wendy Cutler as saying there has been “overwhelming support” for the Korea FTA from those who responded to a call for public comments several months ago but that “more can be done and should be done in the automotive sector.” According to a Reuters article, Rep. Joe Crowley, D-N.Y., added that the White House may not submit the Korea FTA for congressional approval until after mid-term elections in November 2010.
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