Korea to push to finalize FTAs with Ecuador, Gulf states

The Korea Times

The Korea Times

Finance

Sat, September 23, 2023 | 13:17

Economy

Korea to push to finalize FTAs with Ecuador, Gulf states

Posted : 2023-04-05 15:57

Updated : 2023-04-06 10:33

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho speaks during a meeting with economy-related ministers at the Government Complex Seoul, Wednesday. Yonhap

By Yi Whan-woo

Korea will diversify its free trade partnerships with more countries in the face of export declines and concerns over an economic slowdown, the country's top economic policymaker said Wednesday.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said the government accordingly will try to finalize ongoing negotiations on free trade with Ecuador and the six members of the Gulf Cooperation Council (GCC) ― Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman, Bahrain.

"The government will intensely discuss pending issues with those countries to reach the trade deals," Choo said during a meeting with economy-related ministers at the Government Complex Seoul.

Korea currently has 21 free trade agreements (FTAs), both bilateral and multilateral, with 59 countries.

The finance minister addressed a need to overhaul some FTAs in a bid to expand exports that declined for the sixth consecutive month as of March.

In particular, the government will open talks with Chile, India and the United Kingdom in the first half of the year, to address Korea's priority objectives on minerals, digital technology and other trade items.

Korea signed bilateral FTAs with Chile in 2003, India in 2009 and the U.K. in 2019.

For some developing countries where it is difficult to fully open markets by striking an FTA, the government will instead push to sign economic partnership agreements (EPAs).

An EPA is a lower level of trade partnership in terms of its scope as compared to FTA.

Among the targeted countries for possible EPAs with Korea are Georgia and Mongolia.

"The EPA talks will hopefully begin in the first half to help our businesses to set in new markets and diversify their supply chain," Choo said.

To safeguard export items concerning economic security, the finance minister said the government will list them and categorize the items in relation to global supply chains and competition in cutting-edge technology.

Choo also said Korea is actively joining the discussion on the U.S.-led Indo-Pacific Economic Framework (IPEF) aimed at restoring U.S. economic influence in the region

Korea is among the 14 members of the framework launched in May 2022. The member nations include Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.

Concerning IRA, Choo said uncertainties remain over Korean chipmakers' exports and that the government will continue "to engage in talks with the U.S. to maximize Korean businesses' profits and minimize hurdles."

For CBAM, Choo said the government will actively support the companies here to develop carbon-reduction technology so that they can utilize the new EU policy as an opportunity.

yistory@koreatimes.co.kr