European Union–South Korea Free Trade Agreement
 
|
|
| Free Trade Agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part | |
|---|---|
| Negotiations began |
May 2007 |
| Signed | 15 October 2009 |
| Provisional application |
1 July 2011 |
| Signatories | 30 (The European Union, its 28 Member States, and Korea) |
| Ratification status | Provisional |
The European Union–South Korea Free Trade Agreement is a provisional free trade agreement between the European Union (EU), its member states and South Korea. The agreement was signed on 15 October 2009. The agreement has been provisionally applied since 1 July 2011. The ratification process was partially completed on 13 December 2015, pending ratification by Italy and Korea. "The agreement is not yet in force" in the United Kingdom and its future is yet to be clarified in the light of the United Kingdom's Withdrawal from the European Union.
The agreement would be the second largest free trade agreement, second only to the North American Free Trade Agreement. It is also the most comprehensive the EU has ever negotiated: import duties are near eliminated on all produce and there is deep liberalisation in trade in services. It includes provisions for intellectual property (including geographical indications), public procurement, competition, transparency of regulation and sustainable development. There are also specific commitments against non-tariff obstacles on sectors such as automobiles, pharmaceuticals and electronics.
This is the third trade related agreement that South Korea and the European Union have signed between themselves. The first, the Agreement on Co-operation and Mutual Administrative Assistance in Customs Matters was signed on 13 May 1997. This agreement allows the sharing of competition policy between the two parties. The second agreement, the Framework Agreement on Trade and Co-operation, was enacted on 1 April 2001. The framework attempts to increase co-operation on several industries, including transport, energy, science and technology, industry, environment and culture.
Trade between the two parties was €64 billion in 2007. The EU is the second largest importer of South Korean goods. South Korea is the eight largest importer of EU goods. The agreement is commonly referred to as the first of the next generation FTAs signed by the EU that addresses trade concerns beyond tariffs. Chief among these concerns are non-tariff barriers (NTBs); they are significant barriers to trade both in Korea and the EU. In fact, NTBs have been estimated to have the same protection level as a tariff at 76 percent in Korea and 46 percent in the EU. According to some studies, an agreement can increase trade as much as 40% over the long term.
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