EU ambassador says free trade talks with S.K. will not be 'tough'

EU Ambassador Brian McDonald. Photo courtesy of the Delegation of the European Commission to South Korea

New envoy stresses trade and cooperation between two 'developed' markets

"South Korea and the European Union are both advanced economies with developed manufacturing and service sectors. Outside of a few sensitive agricultural issues, talks are not expected to be tough like the free-trade talks between South Korea and the United States."

These are the words of the new EU ambassador to South Korea, Brian McDonald, who met South Korean reporters on November 27 ahead of the possible start of free trade talks between South Korea and the EU.

Before taking the job, Ambassador McDonald had served for trade sectors in EU and the United Nations. "Although it will take months to get approvals from the 25 nation members, I think talks may start early next year, and I hope the talks will swiftly proceed and be wrapped up under South Korea's current administration."

South Korea is EU's first negotiating partner for a free trade agreement in Asia. The EU, which has focused on the expansionary Doha round of World Trade Organization trade talks, will push for free trade deals with India and ASEAN-member nations.

Ambassador McDonald said that "if a free trade pact is signed between South Korea and the EU, more benefits will come from the services sector. Though Koreans are concerned over foreign banks' expansion into Korea, domestic banks can strengthen themselves fundamentally through competition. Korea's plan to become a financial hub in Northeast Asia is impossible without competition with foreign players."

Asked about one of the most sensitive items on the potential talks, "the automotive industry is sensitive for everyone," Ambassador McDonald said. "South Korea generated huge profits by exporting cars to Europe," but European companies were not able to do the same thing in South Korea, he said, citing Korea's tax system for automobiles as one of the main reasons. "European companies want more market access," he said.

Regarding the North Korean nuclear issue, the ambassador said that "we expect good results to come from the six-party talks. The matter should be resolved via negotiations." The EU played a leading role in the UN's recent adoption of a human rights resolution against North Korea, and it has maintained humanitarian programs for North Korea, Ambassador McDonald said.

The ambassador also said he will try to visit North Korea, including Mount Geumgang (Kumkang), at an appropriate time.

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