Korea-EU Trade Talks Stumble on Auto Tariffs
By Jane Han
Staff Reporter
Stiff disappointment loomed on the last day of the fourth round of free trade talks between Korea and the European Union (EU) Friday, with Brussels bluntly summing up Seoul's offer as falling short of its recent accord with the U.S.
Chief EU negotiator Ignacio Garcia Bercero said the EU had made a ``very bold offer'' at the kickoff of talks, which eliminates full duties on Seoul's goods over seven years and removes tariffs on 80 percent within three years, but Korea's proposal fails to reach the same level.
Seoul has offered to remove tariffs on 68 percent of the EU goods within three years, demanding some exceptions as imports of pork and dairy goods still remain sensitive among the locals.
The two sides have launched talks for a free trade agreement (FTA) in May _ just after Seoul reached a trade pact with Washington in April _ but the previous three rounds of talks met frequent snags over auto trade with neither side bending their offers.
The 27-nation economic bloc is pushing Korea to cut tariffs on cars and other products up to par with its deal with the U.S.
``As a major export-oriented economy, we would certainly expect Korea to take a bolder approach to these negotiations,'' said Bercero after a five-day discussion.
Seoul's chief negotiator Kim Han-soo cited similar gaps, ``Both sides did not make a breakthrough, especially in negotiations over auto trade and related regulations.''
Ahead of the fifth round slated for Nov. 19, Brussels demanded that Seoul cut regulations for European carmakers which follows international standards instead of local ones.
Seoul is currently reviewing the EU's new proposal on auto tariffs, but Kim said the assessment so far is negative.
Korean carmakers sold 74,000 vehicles worth $9.1 billion in Europe last year, while buying only 15,000 autos worth $1.6 billion. The country's tariff rate on cars stands at 8 percent against 10 percent for the EU.
As both sides are ambitious to seal an agreement by the year-end, Seoul's chief negotiator hinted the possibility of revising its offer to the EU to expedite the discussion, while his counterpart said the lack of progress did not hinder the EU's commitment to the talks.
EU is Korea's second-largest trading partner after China, with bilateral trade nearing $80 billion last year, while Korea is EU's eighth-largest.
If followed through, the deal would be the largest for Seoul, surpassing the FTA signed in June with the U.S., which still awaits ratification from both sides.