This expansion of trade was mainly driven by intra-industrial trade, particularly in the machinery, electronics, chemical and pharmaceutical sectors. The latest annual data show that machinery and vehicles account for 57 per cent of bilateral flows; for chemicals and related products, the second largest product category, this figure is 21%. These figures demonstrate the increasing integration of European and South Korean supply chains, which have enabled further technological specialisation and greater economies of scale. A concrete example of this integration is the assembly of Hyundai and Kia vehicles in the Czech Republic and Slovakia respectively. Hyundai`s plant in Nošovice, Czech Republic, for example, recently celebrated its three millionth car production in 2019. The trade agreement contains clear rules for the registration of trademarks in the EU and South Korea. This gives you the opportunity to object to the registration of a trademark. You can find out more about the pharmaceutical products and medical devices covered by the agreement here: Annex 2-D Pharmaceuticals and Medical Devices. The EU-South Korea Free Trade Agreement has also had an impact on the relative trade flows between the EU and South Korea. Over the period 2010-2020, EU exports to South Korea increased by 70%, while imports increased much less to 32%. Thus, over the last decade of the EU-South Korea Free Trade Agreement, the EU`s trade deficit with South Korea has gradually narrowed, so that the EU has even recorded trade surpluses with South Korea in recent years. Some economists attribute this to the EU`s economic slowdown in the wake of the sovereign debt crisis, which dampened demand for European imports.
At the same time, South Korea has experienced a rapid economic recovery and has seen an increase in import demand, which has led to a recent trade imbalance (as shown in the chart below): The EU-South Korea trade agreement includes four sectoral rules for a total of the last decade of the EU-South Korea FTA that have proven beneficial for both partners. From a trade policy perspective, there have been clear increases for the EU and South Korea, as evidenced by the increase in the volume of trade and the degree of integration. However, trade disputes have arisen between the two partners, particularly in the areas of labour standards and sanitary and phytosanitary (SPS) measures. The first decade of bilateral trade liberalization has also brought clear benefits to both sides that have gone beyond the narrow issue of creating and deepening bilateral trade. For South Korea, the free trade agreement with the EU has helped achieve its status as a pivotal FTA country while signaling its commitment to bilateral trade liberalization. For the EU, the free trade agreement with South Korea set in motion its commitment to free trade agreements in Asia and its leadership in a new model of free trade agreements for the 21st century. More information on the practical application of the agreement. The agreement includes investments in services and other economic activities, including the agreement in which a number of technical committees and working groups have been set up between the two sides to monitor implementation. The text of the agreement was initialled on 15 October 2009 between South Korea and the EU.
[19] It was signed at the EU-Korea Summit held in Brussels on 6 October 2010. [16] [19] The European Parliament ratified the agreement on 17 February 2011. [16] The South Korean legislature ratified it on May 4, 2011. [20] [21] The EU and South Korea have agreed on high labour and environmental standards to protect workers and the environment. The agreement provides mechanisms to ensure that these commitments are met, including through the participation of civil society. The EU-South Korea Free Trade Agreement promotes rigorous enforcement of intellectual property rights by customs authorities and complements the minimum standards of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). In addition, the trade agreement requires that subsidies be transparent. If the EU or South Korea uses grants, they must report the total amount, type and offer of grants each year.
The agreement has created new opportunities for access to the services and investment market and contains provisions in areas such as competition policy, public procurement, intellectual property rights, regulatory transparency and sustainable development. The free trade agreement also addresses non-tariff barriers to trade, particularly in the automotive, pharmaceutical, medical device and electronics sectors. The agreement was the most comprehensive the EU has ever negotiated: import duties on all products were almost abolished and trade in services was heavily liberalised. It contains provisions on intellectual property (including geographical indications), public procurement, competition, regulatory transparency and sustainable development. There are also specific commitments against non-tariff barriers in sectors such as automotive, pharmaceuticals and electronics. [4] The Agreement contains provisions on trade remedies referring to the relevant WTO rules and provides for additional disciplines for such measures, including notifications and extensive consultations. Since 2011, the EU-South Korea trade agreement has eliminated tariffs on almost all products. It has also removed many other barriers to the export of EU products such as automobiles, pharmaceuticals, electronics and chemicals. Many services between the EU and South Korea have also been opened to investors and businesses for trade. In 2010, the EU and South Korea strengthened their wider relations into a strategic partnership.
On 10 May 2010, the two parties signed a framework agreement, which entered into force on 1 June 2014. It forms the basis for enhanced cooperation on key political and global issues such as human rights, the non-proliferation of weapons of mass destruction, the fight against terrorism, climate change and energy security. .