South Korea to Launch International Trade Negotiations with EU

Earlier this week, South Korea started a series of talks with the European Union regarding a proposed international trade deal. But the negotiations were expected to be less contentious compared with the talks between the United States and South Korea that were concluded last month. It must be noted that for ten months, the US and South Korea had worked hard in order to conclude their free trade talks and come up with an international trade agreement.

The start of the negotiations between South Korea and the EU comes amidst the plans of the EU to begin its trade talks with the Association of Southeast Asian Nations. It must be noted that on Friday last week, the European bloc and the members of the ASEAN agreed to launch their negotiations that could lead to the conclusion of a comprehensive trade agreement. The EU decided to boost its economic ties with the ASEAN members as more bilateral trade deals are being negotiated and signed in the region. In fact, free trade deals were recently and separately inked by the United States, South Korea, Australia, New Zealand, India, and China.

The proposed EU-South Korea international trade pact is expected to boost the position of South Korea as a center of free trade in Asia. Likewise, the agreement is expected to strengthen the position of the European bloc in Asia in terms of trade. South Korean Trade Minister Kim Hyun-jong said that the two parties would work closely in order to come up with a "meaningful progress" during the five-day talks that would take place in Seoul.

Officials of the South Korean government said that the proposed international trade pact with the EU would pose fewer problems compared with the free trade agreement with the US. It must be noted that negotiations between the US and South Korea were delayed due to certain trade differences. The proposed US-South Korea trade pact has also faced the opposition of many South Koreans. Meanwhile, the EU and South Korea have not yet set a specific deadline for the conclusion of their negotiations.

At present, the European bloc is the largest investor in South Korea. The EU is also the second-biggest international trade partner of South Korea, next to China. In fact, two-way trade between the EU and South Korea is valued at around $80 billion. EU Trade Commissioner Peter Mandelson said that the proposed international trade pact with South Korea would be a complementary deal to the Doha Development Round. Meanwhile, Mr. Hyun-jong said that the trade agreement would largely benefit some of his country's exports like flat-screen TVs and automobiles.