Korea, EU Make Significant Progress in FTA Talks

South Korea and the European Union (EU) have made 'significant' progress in their negotiations for a free trade accord, Yonhap News reported quoting trade ministers from both sides Tuesday.

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.

"We confirmed that we have made significant progress during this week's talks," South Korean Trade Minister Kim Jong-hoon was quoted as saying in a conference after ending two days of negotiation in Seoul with his EU counterpart Catherine Ashton.

Kim said both sides agreed to hold the eighth round of negotiations in Seoul in the first week of March.

Though he declined to comment on which issues remain unresolved, Kim said both sides did make significant progress in such areas as auto trade and rules of origin. "But further talks are needed to finalize the deal," he said.

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.

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.