By Jung Sung-ki
Staff Reporter
President Roh Moo-hyun Friday pledged efforts to achieve a free trade agreement (FTA) with the European Union, calling it another ``golden opportunity'' to increase the nation's global competitiveness.
He instructed Cabinet ministers to exert their utmost efforts to conclude a Korea-EU FTA, Cheong Wa Dae officials said.
``The Cabinet has to do its best to successfully conclude the ongoing FTA talks with the EU, utilizing its capabilities acquired from the deal with the United States,,'' the President said during a meeting of FTA-related ministers.
``I feel relieved, as the Cabinet ministers appear to have the ability to sufficiently cope with negotiations with the EU,'' he said. ``The FTA deals are expected to elevate Korea's economic systems and competitiveness to the levels of the U.S. and EU.''
During the meeting, Trade Minister Kim Hyun-chong said that the Korea-EU FTA could turn out to be more beneficial than those of the Korea-U.S. FTA. He said the EU has proposed completely abolishing its tariffs in seven years.
South Korea began FTA negotiations with the EU on May 7, while signing a separate deal with the U.S. at the end of June.
The EU is the world's largest economic bloc with 487 million people from 27 countries and a $1.5 trillion GDP as of 2005. Korean exports to the EU last year reached $48.4 billion and its imports from the EU amounted to $30.1 billion.
The EU is currently Korea's second largest trading partner after China, with two-way trade reaching $78.5 billion. The EU is also the largest foreign investor in Korea with $40.4 billion, overshadowing the U.S. and Japan.