The EU and South Korea Free Trade Agreement: What it Means for Businesses
In July 2011, the European Union and South Korea signed a Free Trade Agreement (FTA), which has been in effect since July 2012. This agreement has brought significant benefits to both sides, opening up new markets and increasing trade flows.
The FTA Agreement between the EU and South Korea aims to reduce tariffs, facilitate investment, and improve access to each other`s markets. This agreement is expected to increase trade flows between the two economic blocs, boost economic growth, and create new opportunities for businesses. Here`s a closer look at the benefits that the EU and South Korea FTA brings to businesses.
Reduced Tariffs on Imports and Exports
The EU-South Korea FTA aims to eliminate tariffs on 98.7% of goods traded between the two economies. This means that businesses can import and export goods without worrying about the additional costs of tariffs. The elimination of tariffs will give EU companies a competitive advantage in the Korean market and vice versa.
Increased Access to Markets
The EU-South Korea FTA provides EU businesses with greater access to the Korean market and vice versa. This agreement aims to reduce non-tariff barriers to trade, such as technical regulations and standards, and improve access to services and government procurement.
Facilitated Investment
The EU-South Korea FTA aims to provide a more predictable and stable regulatory environment for EU businesses investing in South Korea. The FTA provides for the liberalization of investment by removing barriers to foreign investment and protecting investors` rights.
New Opportunities for Businesses
The EU-South Korea FTA offers new opportunities for businesses in both regions. With the elimination of tariffs and the facilitation of investment, businesses can increase their production, enhance their competitiveness, and expand their market share. The FTA also provides new opportunities to cooperate on research and development, innovation, and environmental protection.
Conclusion
The EU-South Korea FTA is a significant agreement that benefits businesses on both sides. The reduction of tariffs, increased access to markets, facilitated investment, and new opportunities for cooperation create a more favorable business environment for companies in the EU and South Korea. By taking advantage of the opportunities provided by the FTA, businesses can increase their competitiveness, expand their markets, and grow their profits.