Free Trade Agreement Europe South Korea

Important note: it is important that the declaration is properly completed or can be rejected by customs. Please consider the official text of the original declaration in Schedule III of the official agreement. The text contains explanatory notes and is available in all applicable languages. The agreement has created new opportunities for access to services and investment markets and contains provisions in areas such as competition policy, public procurement, intellectual property rights, regulatory transparency and sustainable development. Italian carmakers and some French carmakers believe the deal would be of grave harm to them, as it would allow South Korean carmakers to compete with them in the EU. Adolfo Urso, a young Italian foreign trade minister, said the Italian government could veto the agreement on the basis of the concerns of European car manufacturers, which it originally did in September 2010. Trade analysts such as ECIPE`s Hosuk Lee-Makiyama have dismissed car industry lobbying as a “myth”: while EU exports to Korea are estimated at 400%, most Asian brands produce their cars in the EU and Korean cars account for an insignificant share of imports to the EU, which even threaten even the most inefficient car manufacturers in Europe. [11] Italy abandoned its objections in exchange for the postponement of the provisional application of the agreement from 1 January 2011 to 1 July 2011. [12] The agreement contains provisions on trade remedies that relate to relevant WTO rules and provides for additional disciplines for these measures, including enhanced notifications and consultations. The free trade agreement also addresses non-tariff barriers, particularly in the automotive, pharmacy, medical device and electronics sectors. The agreement established a number of specialized commissions and working groups between the two parties to monitor implementation.

The agreement removes tariffs on 98% of import duties and trade barriers for industrial products, agricultural products and services over a five-year period. [13] It ensures that South Korean vehicle emissions regulations are not harmful to European car manufacturers and contains a clause to protect European car manufacturers. [14] [15] [16] The EU-South Korea Free Trade Agreement removes almost 99% of all import duties on products originating in the EU or South Korea1, making imports and exports easier and cheaper.