The EU and South Korea are strengthening their trade and technological cooperation

The European Commissioner for Trade and Economic Security, Maroš Šefčovič, and South Korea’s Minister for Trade, Yeo Han-koo, co-chaired the 13th meeting of the EU-Republic of Korea Trade Committee, held under the Free Trade Agreement (FTA).

Both sides strengthened their cooperation by holding their first Strategic Dialogue on Trade, Supply Chains and Technology, whilst endorsing the final text of the EU-Korea Digital Trade Agreement (DTA), which is to be signed at the EU-Korea Summit later this year.

During the Trade Committee meeting, both sides highlighted thetangible benefits of the FTAfor businesses and citizens. Commissioner Šefčovič emphasised, in particular, the steady growth in trade in goods, as well as the significant level of investment. Both sides welcomed the progress made in updating the Annex on Motor Vehicles and Parts, the agreement to work towards Mutual Recognition in the field of Electronics, and the decision to set up a Working Group on Cosmetics. 

At the same time, a frank discussion took place on the main trade issues and tensions faced by European businesses, farmers and other stakeholders operating in Korea. Commissioner Šefčovič raised, in particular, issues such as market access for agricultural products, offshore wind energy and the automotive sector, as well as restrictions on the online sale of alcoholic beverages.

Through the Strategic Dialogue, the EU and Korea established a platform for forward-looking cooperation on key shared geo-economic priorities, such as economic security, critical raw materials, the protection of the advanced technology supply chain and cooperation on batteries. Commissioner Šefčovič and Minister Yeo also agreed to begin preparations for the launch of a future EU-Korea Strategic Partnership, ahead of the EU-Korea Summit to be held later this year.

Finally, both sides welcomed the agreement reached on the final, ambitious text of the double taxation agreement (DTA), which reflects the EU’s commitment to setting high standards for digital trade, whilst strengthening the interconnection of the EU and Korea’s digital economies. The agreement sets out binding rules that foster consumer confidence and ensure predictability and legal certainty for businesses, as well as secure data flows.

Maroš Šefčovič, Commissioner for Trade and Economic Security, said:“The EU-Korea partnership is a success story: bilateral trade reached €124 billion last year, with the EU being by far the largest investor in Korea. Today’s announcements confirm that we are building on this momentum. I particularly welcome our strong commitment to economic security, from critical minerals to key technologies. In today’s world, cooperation between like-minded partners is essential to ensure stable, predictable and mutually beneficial trade. I look forward to the signing of the EU-Korea Double Taxation Convention at our summit later this year, and to our future Strategic Partnership taking shape.”

More information: European Commission.