South Korea and the European Union are likely to start formal talks on a possible free trade agreement as early as March next year, a state-fund trade body said Friday.
South Korea, Asia's fourth-largest economy, and the EU have engaged in studies for the possible launching of free trade negotiations. Preliminary talks were held earlier this year in Brussels.
"The EU is expected to approve a proposal to start free trade talks with South Korea in February 2007," said Chung Jae-hwa, a senior official at the Korea International Trade Association.
"So, free trade talks between South Korea and the EU will likely to be launched in March 2007," Chung said in a report presented at a public hearing in Seoul to discuss a possible trade deal with the 25-nation economic bloc.
Another state-run research institute predicted that South Korea will be able to create as many as 300,000 jobs in the short term if it successfully signs a free trade agreement with the EU.
"If both sides sign a free trade agreement, it will help South Korea create as many as 300,000 jobs in the short term and 590,000 jobs in the long term," Kim Heung-jong, a senior researcher at the Korea Institute for International Economic Policy, said in a report for the hearing.
"In addition, a successful trade deal with the EU is expected to allow South Korea to expand its gross domestic product by 2.02 percent in the short term," Kim said.
On Nov. 2, South Korean President Roh Moo-hyun said he wants to start free trade talks with the EU next year.
In August, Commerce, Industry and Energy Minister Chung Se-kyun hinted that the government may allow the EU to beat the United States to seal a deal.
South Korea and the U.S. have also engaged in free trade talks, with a fifth round of talks scheduled for next month. So far, no breakthrough has been made and many challenges, including the agriculture, automobile and pharmaceuticals sectors, remain untouched.
Some government officials say South Korea and the EU may start formal talks for a proposed free trade pact as early as next spring.
Last year, trade between South Korea and the EU reached US$71 billion. The EU is the largest foreign investor in South Korea, accounting for more than a third of total foreign direct investment.
About 10 farmers interrupted the public hearing, demanding the government stop it. Farmers fear that a free trade deal would destroy their livelihoods.
The farmers were pulled out of the hearing venue by guards.
They held a press conference outside the venue with a sign that said, "Stop Korea-EU FTA Public Hearing." No injuries were reported.
Seoul, Nov. 24 (Yonhap News)
S. Korea, EU likely to launch free trade talks in March, trade body says |
