SEOUL – South Korea's free-trade deals may further increase this year in line with its efforts to revitalise its ailing pandemic-hit exports and cope with growing protectionism around the globe, a trade promotion agency said today, reported by the Yonhap News Agency.
South Korea and Britain implemented their bilateral Free-Trade Agreement (FTA) on Friday to maintain their trades regardless of London's departure from the European Union.
Following the move, the country now has 17 free-trade pacts that cover 56 countries around the globe.
The free-trade partners accounted for roughly 70% of the country's overall exports in 2019, according to the Korea International Trade Association (KITA).
With South Korea also expecting its first free-trade pact with Japan under the Regional Comprehensive Economic Partnership (RCEP), free-trade partners are anticipated to take up 77% of its trade in the future.
Asia's No. 4 economy is currently awaiting the official launch of the RCEP later this year, which covers Asean and its dialogue partners – South Korea, China, Japan, Australia and New Zealand.
South Korea, meanwhile, plans to sign more FTAs down the road to diversify its trade portfolio and ease its heavy dependence on China and the US, which take up around 40% of exports.
Seoul and Jakarta also signed the comprehensive economic partnership agreement (CEPA) last year, which now awaits parliamentary approval. The CEPA is equivalent to a free-trade agreement but focuses on a broader scope of economic cooperation.
South Korea is negotiating with Malaysia, the Philippines and Cambodia as well.
While South Korea already enjoys free trade under its FTA with Asean, the country believes that separate deals will help exporters enjoy more customised conditions.
Other potential deals for 2021 include a trilateral FTA among South Korea, Japan and China, along with separate deals with Russia and Ecuador.
The country also has completed negotiations with Israel in August 2019 and is currently preparing for an official signing ceremony. – Bernama, January 4, 2021
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