SKorea, EU to begin free trade talks

SEOUL – South Korea yesterday officially approved the start of free trade talks with the European Union, one month after forging a landmark deal with the United States to cut tariffs and other barriers to commerce.

South Korea and the EU will hold their first round of negotiations in Seoul for five days from May 7, the Ministry of Finance and Economy said in a statement. The decision came at a meeting of government officials chaired by Minister of Finance and Economy Kwon O-kyu.The EU is South Korea’s second-largest trading partner after China.South Korean-EU trade totalled US$79,4 billion in 2006, according to the statement.EU Trade Commissioner Peter Mandelson is expected to formally announce the beginning of the talks together with South Korean Trade Minister Kim Hyun-chong on Sunday in Seoul, South Korea said.The announcement of the first round of negotiations comes after South Korea concluded its biggest ever free trade agreement last month with the United States.That deal, the biggest for Washington since the North American Free Trade Agreement more than a decade ago, still requires approval by legislatures in both countries to take effect.The US is South Korea’s third-largest trading partner with 2006 bilateral trade amounting to US$76,9 billion.South Korean labour, farm and activist groups carried out regular street demonstrations against the negotiations, which lasted for 10 months, saying a deal would cost jobs and harm livelihoods in South Korea.If successful, a deal with the 25-member EU would be South Korea’s biggest, exceeding even that with the US The EU’s economy in 2005 amounted to US$13,5 trillion in size, South Korea said, citing International Monetary Fund figures, making it larger than the US at US$12,5 trillion.Nampa-APThe decision came at a meeting of government officials chaired by Minister of Finance and Economy Kwon O-kyu.The EU is South Korea’s second-largest trading partner after China.South Korean-EU trade totalled US$79,4 billion in 2006, according to the statement.EU Trade Commissioner Peter Mandelson is expected to formally announce the beginning of the talks together with South Korean Trade Minister Kim Hyun-chong on Sunday in Seoul, South Korea said.The announcement of the first round of negotiations comes after South Korea concluded its biggest ever free trade agreement last month with the United States.That deal, the biggest for Washington since the North American Free Trade Agreement more than a decade ago, still requires approval by legislatures in both countries to take effect.The US is South Korea’s third-largest trading partner with 2006 bilateral trade amounting to US$76,9 billion.South Korean labour, farm and activist groups carried out regular street demonstrations against the negotiations, which lasted for 10 months, saying a deal would cost jobs and harm livelihoods in South Korea.If successful, a deal with the 25-member EU would be South Korea’s biggest, exceeding even that with the US The EU’s economy in 2005 amounted to US$13,5 trillion in size, South Korea said, citing International Monetary Fund figures, making it larger than the US at US$12,5 trillion.Nampa-AP