March 24, 2009

Officials from South Korea and the EU will negotiate on the Free Trade Agreement to iron out some differences including on meat markets.

Officials from both sides will work to find a common ground on rules of origin, duty drawback and the opening of the beef and pork markets.

South Korea and the EU have agreed to scrap or phase out tariffs on 96 percent of EU products and 99 percent of South Korean products within three years. Tariffs on all industrial goods will also be abolished within five years after the deal takes effect, trade officials said.

However, South Korea's dairy and pig industries are opposing the FTA on fear that a trade treaty with dairy-producing EU could harm domestic production.

Industry representatives said the government promised to abolish tariffs on pork later than it did in the FTA with the US.

They said it is the government's plan to overcome domestic opposition and sign a trade deal with the EU. Domestic dairy and pig farmers also blasted the government for agreeing not to deal with the EU's subsidies to its dairy exporters at free trade negotiations.

The FTA is expected to be finalised early April.