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The EU has called on Korea to improve its trade offers on major items like pork and cars in the second round of free trade talks underway in Brussels. The 25-nation bloc told Korea it could withdraw its initial proposal promising to fully open all product markets within seven years after the trade deal goes into effect unless Korea makes more drastic concessions on tariffs, according to chief Korean negotiator Kim Han-soo.
The government decided to accept part of the EU¡¯s demands and review removing tariffs on cars earlier than originally proposed and opening up markets for manufactured, agricultural and fisheries goods more widely. Korea in its original concession list delivered to the EU on July 6 sought to protect rice and abolish tariffs on 250 critical agricultural and fisheries goods within more than 10 years. As for pork and cars, which are of strategic importance to the EU, Korea proposed opening up the market for the latter in seven years and leave the timing and level of the opening of the pork market undecided.
Kim said his team will exchange opinions with other ministries about the opening of the car market after returning home. However, that process will be difficult since the Ministry of Commerce, Industry and Energy is reluctant to open the automobile market to the EU. An official with the Ministry of Foreign Affairs and Trade said Korea is in a position to demand a wide opening of the European car market because it has a competitive edge in the sector. But Seoul failed to be more aggressive in the negotiations due to differences among ministries.
Korea last year exported 740,000 cars to the EU but imported a mere 15,000 from there. The EU imposes a 10 percent tariff on cars, higher than the 8 percent tariff in Korea. The Federation of Korean Industries (FKI) estimates that a complete removal of tariffs on cars in the EU would increase Korea¡¯s car exports to the continent by US$1.48 billion a year.
(englishnews@chosun.com )
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