Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 2-EU agrees to sign free-trade deal with South Korea

Published 09/16/2010, 10:23 AM

* Signing to take place on Oct. 6

* Pact to come into force July 1, 2011

* Italy ministers hope deal will lead to more agreements (adds Italian ministers' comment)

BRUSSELS, Sept 16 (Reuters) - The European Union agreed on Thursday to sign a free trade agreement with South Korea, one of the most far-reaching trade pacts the union has negotiated with a third party, the Belgian foreign minister said.

"This the first generation of bilateral trade agreements which will bind Europe and Asia together in an ever-closer economic bond," Steven Vanackere told a news conference on the sidelines of a meeting of EU leaders in Brussels.

"This is a very big step in opening markets in Asia for our companies."

The deal is due to be formally signed at an EU-South Korea summit in Brussels on Oct. 6 and will come into force from July 1, 2011, Vanackere said.

Italy had resisted giving its approval to the pact -- which requires unanimous backing from all 27 EU member states -- but gave its support after a compromise was reached to delay the introduction of the agreement by six months.

"We are fully satisfied because the condition on the timing of the accord's entry into force has been met," Italian Foreign Minister Franco Frattini and Deputy Minister for Economic Development Adolfo Urso said in a statement.

"We hope that this agreement will be a harbinger of new bilateral agreements," they said.

EU officials say the agreement will create about 19 billion euros ($24.64 bln) of new exports for EU producers. Combined EU-South Korea trade in goods was worth about 53 billion euros in 2009, according to EU figures.

The EU has been racing to secure an agreement with South Korea, the world's 12th largest economy and one of the few to avoid recession during the global economic downturn, as it wanted to strike a pact before the United States did so.

In 2009, Korea was the world's eight largest exporter and 10th largest importer, according to the World Trade Organisation. The EU is the world's largest trading zone.

EU foreign affairs chief Catherine Ashton, who previously served as EU trade commissioner and negotiated the early stages of the South Korea deal, spoke at length to Italian officials in recent days to push for their support, diplomats said. (Reporting by David Brunnstrom; Editing by Luke Baker)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.