SEOUL, Nov. 15 (Yonhap) -- South Korean companies called on the government Thursday to push for the early lowering of the European Union's (EU) import duties on cars and electronic goods at free trade talks scheduled for next week.
Representatives from such industry umbrella groups as the Korea Automobile Manufacturers Association (KAMA) and the Korea Display Industry Association (KDIA) said it is imperative that local companies be allowed to export goods without paying import duties if a free trade agreement (FTA) is reached.
In four previous FTA talks held between South Korea and the EU, European negotiators said they want to maintain tariffs on cars and some electronic products for up to seven years.
Cars and electronics account for a large part of South Korea's exports to the 27-nation economic bloc, which totaled US$48.45 billion last year. The EU is the second-largest destination for South Korean products after China.
South Korean companies also said that Seoul must get the EU to soften its stance on its country of origin rules for components that go into products.
"Because EU countries can get cheap parts from East European members, they are insisting on higher percentages of so-called locally made parts than even the United States," said one businessman. He said that since South Korea imports many of its components from countries like China, the EU's position places local companies at a disadvantage if a FTA is signed.
The request by KAMA, KDIA, and other interest groups including the Korea Chamber of Commerce and Industry and the Federation of Korean Industries comes as the trading partners get ready for the fifth round of talks in Brussels from Monday to Friday.
Local businesses have held six previous talks beginning in February to coordinate their requests to government negotiators and to exchange views on how best to maximize benefits from the FTA.
The government, meanwhile, said the upcoming talks will determine whether the trade talks will proceed on track or take longer than anticipated. Seoul said it wants to conclude negotiations within the year.
"Policymakers will reflect requests made by businesses at the upcoming talks," said Hong Suk-woo, the deputy minister for trade at the Ministry of Commerce, Industry and Energy.
He said that while Seoul will do its best to help companies, businessmen should do their part to aggressively make inroads into the world's single largest economic block.
Representatives from such industry umbrella groups as the Korea Automobile Manufacturers Association (KAMA) and the Korea Display Industry Association (KDIA) said it is imperative that local companies be allowed to export goods without paying import duties if a free trade agreement (FTA) is reached.
In four previous FTA talks held between South Korea and the EU, European negotiators said they want to maintain tariffs on cars and some electronic products for up to seven years.
Cars and electronics account for a large part of South Korea's exports to the 27-nation economic bloc, which totaled US$48.45 billion last year. The EU is the second-largest destination for South Korean products after China.
South Korean companies also said that Seoul must get the EU to soften its stance on its country of origin rules for components that go into products.
"Because EU countries can get cheap parts from East European members, they are insisting on higher percentages of so-called locally made parts than even the United States," said one businessman. He said that since South Korea imports many of its components from countries like China, the EU's position places local companies at a disadvantage if a FTA is signed.
The request by KAMA, KDIA, and other interest groups including the Korea Chamber of Commerce and Industry and the Federation of Korean Industries comes as the trading partners get ready for the fifth round of talks in Brussels from Monday to Friday.
Local businesses have held six previous talks beginning in February to coordinate their requests to government negotiators and to exchange views on how best to maximize benefits from the FTA.
The government, meanwhile, said the upcoming talks will determine whether the trade talks will proceed on track or take longer than anticipated. Seoul said it wants to conclude negotiations within the year.
"Policymakers will reflect requests made by businesses at the upcoming talks," said Hong Suk-woo, the deputy minister for trade at the Ministry of Commerce, Industry and Energy.
He said that while Seoul will do its best to help companies, businessmen should do their part to aggressively make inroads into the world's single largest economic block.
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