South Korea signs FTA with Gulf Cooperation Council
Seoul, The Gulf Observer: South Korea signed a free trade agreement (FTA) with a group of Arab countries Thursday, a move expected to strengthen Seoul’s export competitiveness and boost energy security, the industry ministry here said.
South Korea’s Trade Minister Ahn Duk-geun and Secretary General of the Gulf Cooperation Council (GCC) Jassim Muhammad Al-Budaiwi signed a joint declaration on the conclusion of the bilateral FTA in Seoul on the day, according to the Ministry of Trade, Industry and Energy.
The two sides began negotiations for a bilateral free trade deal in 2007, which were suspended in 2010. After a 13-year hiatus, they resumed talks in 2022 and have since held several rounds of negotiations.
It is South Korea’s 25th FTA.
Under the agreement, South Korea will remove tariffs on 89.9 percent of all items, including liquefied natural gas, liquefied petroleum gas and other petroleum products.
The Gulf nations will lift tariffs on 76.4 percent of all products traded, along with tariffs of 4.1 percent of goods traded.
Of major items, South Korea expects growth in exports of vehicles, auto parts, machinery and weaponry to the Arab nations through the agreement, the ministry said, adding that cheaper energy imports from the Arab nations will enhance competitiveness of South Korean exporters.
The GCC is the fifth-largest trading partner for South Korea, with trade volume between the two sides coming to US$102.6 billion in 2022, according to the ministry.
