May 3, 2006

South Korea and ASEAN agree on agricultural tariff cuts at FTA talks

South Korea and the Association of South-east Asian Nations (ASEAN) have agreed to cut on some agricultural tariffs so as to facilitate a free trade agreement (FTA), South Korea's International Agriculture Bureau said on May 3.

The two sides reached the agreement at talks held in Cambodia last week, while an agreement will be signed this month when representatives meet in the Philippines.

According to bureau head Bae Jong-ha, South Korea has specified 200 agricultural products--such as beef and certain pork products--that will be exempt from tariff reductions; ASEAN has also allowed it to hold on to tariffs on 40 "super sensitive" products like ginseng, powered milk and sweet potatoes until 2015, before gradually reducing duties by 20 percent in the coming years, starting 2016.

The same grace period will apply to the commodity corn, but tariffs will be cut by up to 50 percent.

Seoul and ASEAN started to hold talks on liberalising their agriculture, services and investment sectors this year and plan to conclude the FTA by December.

South Korea has already signed FTAs with Chile and Singapore and is seeking similar arrangements with the US.