Korea-EU FTA Serves as Safety Net for Korea’s Exports
26/06/2013 80
Most viewed articles
SEOUL, KOREA – The South Korea-EU FTA turned out to have propped up Korea’s exports to the EU in the midst of the global economic slowdown.
According to the Ministry of Trade, Industry and Energy (MOTIE), Korea’s exports to the EU from July 1, 2012 to May 31, 2013 slid 6.5% y-o-y to USD 43.7 billion. With the European economy in the doldrums, the EU’s demand for Korean products flagged. In particular, the South Korean shipbuilding sector was hit the hardest, witnessing its exports to the EU tumbling 29.7% during the same period.
Of the total export items, exports of items benefitting from the FTA's reduction and elimination of tariffs (down 1.5% during the same period) performed better than those of non-FTA items (down 12.2%).
FTA-backed SME exports have also improved. Korean SMEs’ exports to the EU ticked up 1.7% for the two years following the ratification of the Korea-EU FTA compared to the two-year period before the FTA. Exports covered by the FTA gained 7.9% while non-FTA goods dipped 15.7%.
June 22, 2013
Source: Korea IT Times
- Viet Nam updates preparations for negotiations to join Information Technology Agreement expansion
- How digital payments are reshaping a fast-growing digital banking market
- Green production zones to boost standing of Vietnamese farm products
- IMF to closely monitor China’s economic growth amid trade tensions
- Export growth key to Viet Nam’s double-digit economic expansion