South Korean officials said Thursday they want to seal a free trade pact with the European Union as soon as possible this year, but that there would be no breakthrough in next week's round of talks. "Critical issues will not be discussed at talks next week," said deputy trade minister Cho Tae-Yul, citing the upcoming transition of power in Seoul.
He suggested that both sides should work harder to iron out differences over cars and other contentious issues after president-elect Lee Myung-Bak takes office on February 25. "We still hope South Korea and the EU will conclude talks at an early date this year," he said. Next week's round will be the sixth since talks started in May last year.
The EU has offered to eliminate or phase out all import tariffs on South Korean goods within seven years, and to remove tariffs on 80 percent of them within three years. Seoul has offered to remove tariffs on 68 percent of EU goods within three years, demanding some exceptions since imports of pork and dairy goods still remain sensitive issues for many South Koreans.
On cars, the EU has offered to eliminate a 10 percent tariff within seven years. It wants South Korea to ease regulations on European cars by applying less restrictive international technical standards. South Korea's tariff rate on cars is eight percent.
The EU is South Korea's second-largest trading partner after China with nearly 80 billion dollars in two-way trade last year. A free trade deal with the EU would be the biggest-ever for South Korea, surpassing the agreement signed last June with the US which awaits ratification by legislatures in both countries.