Three Korea-EU FTA Implementation Committees Held... Review of 3 Areas Including Cars

Product Trade Committee, Automobile Task Force, Trade Remedy Cooperation Task Force

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy announced on the 3rd that it held sectoral implementation committees under the Korea-European Union (EU) Free Trade Agreement (FTA) for two weeks starting from the end of last month.

Three implementation committees were held: the Korea-EU Goods Trade Committee, the Automotive and Parts Working Group, and the Trade Remedies Working Group.

Korea and the EU reviewed the FTA implementation status and discussed ways to expand trade and investment cooperation between the two sides, as well as solutions to industry difficulties.

The Korea-EU FTA marks its ninth year of enforcement this year. The two sides traded $108.6 billion last year. The EU became Korea's top investment partner.

The EU invested $111.9 billion in Korea last year, exceeding investments from the United States ($84.7 billion) and Japan ($45.5 billion).

At the implementation committee, both sides also discussed ways to enhance the utilization of the FTA by companies on both sides through the removal of non-tariff barriers.

Our side requested the EU to promptly grant an adequacy decision under the General Data Protection Regulation (GDPR) to activate digital trade.

Korean companies operating in the EU are spending 1.2 trillion won to comply with the GDPR, and if the EU approves adequacy, about 40% (500 billion won) can be saved.

Additionally, our side urged the EU to terminate the steel safeguard measures as scheduled in June next year.

Regarding the natural and organic cosmetics certification system and packaging material grading system, which the EU showed interest in, sufficient explanations were provided to enhance mutual understanding.

Jung Daejin, Director General of Trade Policy at the Ministry of Trade, Industry and Energy, said, "Next year marks the 10th anniversary of the Korea-EU FTA enforcement," adding, "This implementation committee served as a good opportunity to improve market accessibility between the two sides and confirm mutual interests and progress."