South Korea and the
six-nation Gulf Cooperation Council (GCC) have agreed to reach a free
trade agreement (FTA) by the end of next year, officials said
Wednesday.
'This week's meeting will be focused on laying the
foundation for an early completion of the free trade talks,' South
Korean deputy Trade Minister and chief negotiator Lee Hye Min told
reporters, as both sides started the first round of free trade
negotiations in the South Korean capital Seoul. The meeting is expected
to last two days.
The GCC includes Bahrain, Saudi Arabia, Oman, Qatar, the United Arab Emirates and Kuwait.
'Both sides agreed in principle to wrap up the negotiations by the end
of next year,' Lee was quoted by the national Yonhap news agency as
saying.
'There are not many sensitive issues between the two sides, so negotiations will go smoothly,' he predicted.
Lee told The Korea Herald that it was agreed in principle to hold not more than four rounds of talks.
According to the daily, Lee expressed urgency for a trade pact with the
GCC, emphasizing the risk of South Korea falling behind other major
economies in having a strategic trade accord.
'The GCC is now
in talks with Japan and the EU, so a failure of Korea to secure an FTA
with this region would hurt our industries.'
Lee's office
said in a statement the FTA with the GCC would help South Korea secure
a stable energy supply. The GCC countries hold around 40 per cent of
the world's oil reserves.
South Korea bought 53.5 billion
dollars worth of energy resources, mostly oil, from the six Gulf states
last year, accounting for 72 per cent of its total energy imports.
Two-way trade reached 66.1 billion dollars last year, and the GCC is the Asian country's fifth-largest trading partner.
South Korea has actively pursued the conclusion of FTAs with major
trade partners. As a result it has signed free trade deals with 16
countries, including Chile, Singapore, and the European Free Trade
Association (EFTA), ASEAN and the US. Negotiations with the EU, Canada
and India are currently underway.
