Skip to comments.Effect of Korea-EU FTA misses expectations
Posted on 06/30/2013 8:36:51 PM PDT by TexGrill
Koreas Free Trade Agreement with the European Union, which is to celebrate its second anniversary on Monday, was the countrys seventh trade pact, and the one of largest scale.
Upon its effectuation in July 2011, the government assured that the pact would bring tangible benefits to the economy by lowering the tariffs on Koreas key strategic export items, such as cars, electric devices and textile goods.
After two years of implementation, however, the economic leverage of the Korea-EU FTA still seems to be subject to disputes.
The European Union, the largest economic bloc in the world, is also Koreas second-largest trading partner, ranked after China.
Back in 2010, the nations total trade volume and export volume with the EU were $92.2 billion and $53.5 billion, respectively. The trade balance surplus, too, was $14.8 billion, which was 1.6 times larger than that with the U.S., according to the Ministry of Trade, Industry and Energy.
The Korea-EU FTA reflects Europes appreciation of Koreas geographic and economic significance as it is the EUs first-ever trade pact to be signed in the Northeast Asian region.
(Excerpt) Read more at koreaherald.com ...
Europeans are far less willing than Americans to buy imported Asian goods. So the elimination of trade barriers isn’t going to have much effect on market acceptance. And most Europeans I know (hard to think of a single one, as opposed to Taiwan or Mainland China, who’s every visited the place) think Koreans live in caves. The drive in from Incheon Airport past the endless high rises of Seoul would open their eyes.