Cars, chemicals among major winners of S. Korea-EU FTA: KITA

SEOUL, June 30 (Yonhap) — South Korea has been enjoying robust exports of automobiles and chemical products to the European Union over the past 10 years on the back of its free trade agreement (FTA) with the world’s single largest economic bloc, data showed Wednesday.

Outbound shipments of automobiles came to US$8.4 billion in 2019, which doubled from $3.3 billion tallied in 2010, according to the data compiled by the Korea International Trade Association.

South Korea became the first Asian country to implement an FTA with the EU in July 1, 2011.

Exports of electric cars to the EU came to $4.6 billion in 2020, soaring from just $200 million reported in 2017.

“As South Korea currently exports EVs without tariffs, it holds an advantage compared to other rivals, including the United States, China and Japan,” the association added.

Outbound shipments of chemical products also reached $7.1 billion as of 2020, rising around 19 percent annually since $1.2 billion in 2010.

KITA said the FTA with the EU also helped Asia’s No. 4 economy diversify its supply chain of materials, parts and equipment.

South Korea, which relied heavily on imports of the three segments from Japan, saw its dependence fall to 20.8 percent in 2020. Instead, the ratio of imports of such products from the EU rose 3.5 percentage points over the period to 13.6 percent.

Exports of agricultural products to the EU also more than doubled over the cited period to reach $450 million in 2020 as well, led mostly by tuna, mushrooms and kimchi.

KITA, however, said South Korea may face more competition in the EU market down the road, as Japan, Singapore and Vietnam also have clinched FTAs with the bloc.

colin@yna.co.kr
(END) (YONHAP NEWS)