S. Korea, EU Launch High-Level Trade Talks

Trade ministers from South Korea and the European Union (EU) Monday started their two-day meeting in Seoul to iron out divisive issues related to a free trade deal, according to Yonhap News.

Since signing a free trade agreement (FTA) with the United States in 2007, South Korea has held seven rounds of negotiations with the EU in a bid to gain greater footing in the 27-nation economic bloc, South Korea's second-largest trading partner after China.

During the talks, South Korean Trade Minister Kim Jong-hoon and his EU counterpart Catherine Ashton will attempt to resolve contentious issues such as auto trade and rules of origin.

"We are close to a gate that leads to a new era," Kim told reporters before starting the meeting. "It will not be easy to resolve contentious issues, but having talks with an open-minded attitude is more important."

A date for the eighth round of talks has not yet been set, but the trade ministry said earlier that both sides would be able to strike a deal by the end of March this year.

The negotiations have made little headway as both sides have been reluctant to accept the other's demands on tariff reductions, rules of origin, auto trade and auto-related technical standards.

But at last month's meeting between chief negotiators from both sides, the two countries made significant progress, according to the officials.

Bilateral trade came to $93.07 billion in 2007, and some unofficial studies suggest an FTA would boost that figure by as much as 40 percent in the long run. The EU is also the largest foreign investor in South Korea, with outstanding investment reaching $43.40 billion at the end of 2007.