BRUSSELS, Oct 15 (Reuters) - The European Union and South Korea on Thursday initialled a long-awaited trade pact potentially worth 100 billion euros ($149 billion) to both economies, suffering from the worst financial crisis in decades.
The trade deal is the most important negotiated between the 27-nation European Union and a third country, the executive arm of the EU said in a statement.
It is worth an estimated 19 billion euros in new trade in goods for EU exporters, around 12 billion euros in goods for Korean companies, and will see the removal of all tariffs as well as many non-tariff barriers between the two economies.
"It will create new market opportunities for European companies in services, manufacturing and agriculture," EU Trade Commissioner Catherine Ashton said in the statement.
"This agreement is particularly important in the current economic climate, helping to fight the economic downturn and create new jobs," Ashton said.
EU-Korea goods trade was worth around 65 billion euros in 2008. The EU currently runs a deficit with South Korea in goods trade, although trends suggest that the Korean market offers significant growth potential for European companies.
The deal will see the quick elimination of 1.6 billion euros of duties for EU exporters to Korea and tackle key non-tariff barriers including regulations and standards in industries such as automotive, pharmaceuticals and consumer electronics.
The agreement is expected to enter into force in the second half of next year after approval by the European Parliament. (Reporting by Bate Felix and Darren Ennis; Editing by Dale Hudson)