Colombia offers FTA hub to Korea
By Kim Tae-gyu
Staff reporter
Instead of trying to sign free trade agreements (FTA) with all the countries in any region or continent, Korea can take advantage of a specific nation that freely trades with its neighboring states.
This is the unique idea of Colombian Minister of Trade, Industry and Tourism Luis Guillermo Plata, who said Colombia can become an ``FTA hub'' for Korean firms in the South and Central American areas.
``Colombia has negotiated FTAs with all the neighboring countries including Brazil, Argentina, Uruguay, Paraguay, Peru and Mexico,'' Plata told The Korea Times in an interview earlier this week.
``So companies investing in Colombia are looking at markets of 45 million, which is not a small market, and they are also reaching the neighboring countries as well... We are emerging as a hub of the region.''
Plata said the bilateral trade agreement between Korea and Colombia, which was signed Tuesday here in Seoul, would open up new windows of opportunities for mutual cooperation.
The two countries would gain further momentum for the ``FTA hub'' scheme should they conclude the negotiations for the FTA, which started late 2009. Both sides aim to wrap up the agreement, the first one for Colombia in Asia.
Plata picked automobiles, machinery, electronics and steel as segments where Korean firms can invest in Colombia in consideration of the latter's strong networks of providing quality components ―the country has more than 100 auto part suppliers.
To attract investment in such sectors, he visited the Hyundai-Kia Automotive Group in southern Seoul, Korea's largest carmaker, and met its senior executives.
When contacted, Korea's Ministry of Foreign Affairs and Trade said that the idea of the ``FTA hub'' made sense.
``As a separate market, Colombia is big. In addition, it has easy access to most Latin American countries, which makes Colombia a very attractive partner,'' a ministry official said.
Plata demonstrated not only rational reasons such as the FTA hub idea but also emotional ones that would lead Korean companies to invest in the country situated in the northwestern corner of South America.
``As we answered the invitation of Korea 60 years ago, I hope that Korea will answer our invitation this time around.''
Colombia sent thousands of troops in order to assist in the allied effort in the Korean War (1950-53). Among the total 16 participants in the fratricidal war, Colombia was the only Latin American nation.