2004-11-30 (TUE)

Korea Set to Launch FTA with Singapore

Also in Vientiane
President Roh and Singaporean Prime Minister Lee Hsien Loong have signed a bilateral Free Trade Agreement.
This is only the second FTA for Korea but officials are saying Singapore's agreement to give exports made in a special industrial zone in North Korea the same status as those made in the South is a significant development.
Park Soojin has the details.

South Korea and Singapore have officially reached a Free Trade Agreement.
On the sidelines of the ASEAN summit in Vientiane, Laos the heads of the two governments signed the pact after holding an unscheduled meeting on Monday.
Being the second FTA for Korea after its first one with Chile went into effect in April the pact between Seoul and Singapore stipulates expanded bilateral cooperation in such areas as finance, logistics and service.
According to Seoul's Foreign Affairs and Trade Ministry the agreement involves lifting tariffs on almost all products, with the exception of Seoul retaining protective duties on its agricultural produce.
This clause was included to minimize opposition from Korea's agricultural sector which staged months of protests before the FTA with Chile was approved.
What's noteworthy about this FTA is that all products manufactured in both South and North Korea are eligible to benefit from the conditions of the treaty.

"By agreeing to the same preferential duties for goods made in South Korea and those produced in North Korea's Gaeseong Industrial Complex we have set an important precedent for access to overseas markets."

One of the region's leading logistics and commerce hubs Singapore is Korea's ninth largest trading partner with bilateral trade standing at about 8.5 billion U.S. dollars in 2003.
Experts say the pact will help Korea's service sector become more competitive while increasing Singapore's investment in the country.
Officials in Seoul say they consider the pact with Singapore a strategic one, which they hope will lead to more such agreements with other Southeast Asian countries.
The Korea-Singapore FTA is expected to be approved by the National Assembly next year.
Park Soojin, Arirang TV.