The EU and Korea have concluded the 7th round of negotiations for an EU-Korea FTA.  The first negotiations were launched on 6 May 2007.  During the last round of negotiations in January 2008, the EU and Korea agreed on important issues such as sustainable development, antitrust and merger aspects of competition policy, transparency of domestic regulation and bilateral dispute settlement mechanisms. 

The current negotiations covered a wide range of negotiating issues, including non-tariff barriers, industrial goods tariffs and rules of origin. 

The two sides made further progress on ‘behind the border’ issues such as standards and certification requirements in a number of sectors.  Korea has also signaled its readiness to examine enhanced protection for geographical indications (GI’s).

Korea used this round to raise the question of the EU’s rules of origin -the rules governing the import of products into the EU produced in more than one country.  Both sides have achieved a better understanding of each other’s positions, and the EU intends to present a compromise proposal to Korea.

The difficult question of tariffs for industrial goods, including those on passenger cars, and the automotive non-tariff barriers have been discussed among the two negociators.  The gap in the respective positions remains.  However, both sides recognise the need to come to a common understanding.   

Eu and Korea will continue contacts at various levels.  The next round of negotiations is expected to be the final one, for which the date has not yet been fixed. 

The EU is committed to securing a comprehensive, highly ambitious and balanced agreement, in line with what the Commission set out in its Global Europe trade strategy.  The EU is Korea’s second largest export destination after China, and Korea is the EU’s fourth largest non-European trade partner.  The EU remains the largest foreign investor in Korea ahead of the US, Japan and China.  EU-Korea trade exceeded €64 billion in 2007.

Source: EU Trade News weekly digest 15 May 2008

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