EU Parliament approves FTA with South Korea

After securing guarantees that Europe’s auto industry would not be hurt by South Korea’s tougher laws on fuel efficiency and carbon dioxide emissions, the European parliament approved a trade pact with South Korea on February 17 that is one of the largest trade deals ever negotiated, aiming to double commerce between the two sides. Effective in July 2011, the deal provides for the removal of an 8% tariff on EU cars exported to South Korea, which would save €2,000 (US$2,733) in duties for every car worth €25,000 (US$34,181) exported to the Asian country. The deal will eliminate 98% of import duties and other trade barriers between EU-member countries and South Korea in manufactured goods, agricultural products and services within the next five years. (February 17, 2011)