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Korea and the European Union agreed to sign their free trade agreement within this year, Korean chief negotiator Lee Hye-min said Thursday. He was speaking at the EU Commission building in Brussels, where the seventh round of negotiations is being held. Instead of intensive full-scale talks, the two sides agreed to negotiate on a smaller scale -- at the ministerial, departmental, and top negotiator levels -- whenever necessary until the eighth and, they hope, concluding round in Seoul.
When the FTA goes into effect, Korea will be able to trade freely with the 27 member countries of the EU which, with a population of 500 million, is one of the largest markets in the world. The trade volume between Korea and the EU was US$89.7 billion in 2007, making the EU Korea¡¯s second largest trade partner after China.
The Korea Institute for International Economic Policy predicts that with complete opening of the manufacturing industry and a 50 percent opening of the agriculture and service sectors, the FTA would in the short term generate a 2 percent, or W15 trillion (US$1=W1,047), increase in Korea¡¯s GDP, and up to 3 percent, or W24 trillion, in the long run.
Although both sides agreed on concluding the negotiation this year, there reportedly remain significant differences of opinion. ¡°We still haven¡¯t narrowed the gap on sensitive issues like the car industry,¡± said Lee.
(englishnews@chosun.com )
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