The European Commission’s General Directorate for Trade (DG Trade) commissioned Copenhagen Economics and Professor Joseph F. Francois to analyse the economics aspects of a potential free trade agreement between the EU and the republic of South Korea.

 

Korea is a growing economy, roughly of the same size as Spain. GDP per capita is also approaching Spanish levels. We found that both Korea and the EU can look forward to substantial welfare gains if agreement is reached on free trade in agriculture, manufacturing and services. For South Korea the gains will materialise through better market access to the European market, including advanced electronics and motor vehicles. Korea will also gain from opening its services sectors to European service providers, including maritime services and shipping. These are essential inputs for the continuation of Korean growth, and European service providers can competitively supply this if current barriers are dismantled.

 

The European Commission has now obtained a mandate to negotiate with Korea. For further information please see the report here  

 

Or consult the Commission’s webpage on trade with Korea here

 

For further information please contact Martin Hvidt Thelle