The European Parliament has approved the Free Trade Agreement with South Korea. The pact, emerged on the initiative of the Members of the European Parliament (MEPs), includes a serie of measures to promote European exports in South Korea, and at the same time provides a range of safeguard measures to protect the European industry.Following the agreement 98% tariffs and other trade barriers on agricultural products, manufactured goods and services will be abolish over the next five years. It is also believed that the trade between the EU and South Korea could reach 19.100 million euros and thanks to that agreement European exporters could save 1.600 milion per year.
The pact also considers trade-relation activities, such as public procurement, intellectual property rights, labor standards and environmental regulations.
Currently, the tariff imposed by South Korea to the European textile products is 10.06%. The agreement eliminates most of the 60 million euros in taxes to European exporters. Also, the chapter on intellectual property that protects European brands will apply both to registered designs as unregistered.
The EU may impose safeguard measures if the reduction or elimination of tariffs leads to increase imports from South Korea that may cause “serious damage” to the European Union producers.
FTA EU-South Korea: