Wednesday, February 25, 2004
S Korea's free trade accord with Chile to take effect in April
Associated Press Seoul, February 25
South Korea's first free-trade agreement, negotiated with Chile last year, will take effect on April 1, South Korea's Ministry of Foreign Affairs and Trade said on Wednesday.
After months of delays and violent clashes between protesting farmers and police, South Korea's parliament approved the accord last week. The National Assembly delayed voting on the accord three times amid vociferous protests from farmers who fear that the accord will flood the Korean market with cheap agricultural products and threaten their livelihoods.
The government announced on Wednesday that the accord would take effect April 1 and that its implementation would help restore international trust in South Korea's commitment to free trade. The deal removes South Korean tariffs on Chilean wheat, wool, tomatoes and hundreds of fisheries products. In return, Chile will lift tariffs on South Korean motor vehicles, cellular phones, computers, TV sets and air conditioners. To help its farmers adjust, South Korea late on Tuesday promised 584.2 billion won ($499 million) in aid this year to help buffer the effects of the free-trade agreement.
As a result of the deal, South Korean exports to Chile are expected to increase by $636 million while Chilean imports will rise by $250 million, according to the government-funded Korean Institute for International Economic Policy.
© Hindustan Times Ltd. 2004.