This file photo shows South Korean President Yoon Suk-yeol (R) shaking hands with Saudi Crown Prince and Prime Minister Mohammed bin Salman in Riyadh on Oct. 24, 2023. (Image courtesy of Yonhap)
SEOUL, Dec. 28 (Korea Bizwire) — South Korea struck a free trade agreement (FTA) with a group of Arab countries Thursday, a move expected to strengthen Seoul’s export competitiveness and boost energy security, the industry ministry here said.
South Korea’s Trade Minister Ahn Duk-geun and Secretary General of the Gulf Cooperation Council (GCC) Jassim Muhammad Al-Budaiwi signed a joint declaration on the conclusion of the bilateral FTA in Seoul on the day, according to the Ministry of Trade, Industry and Energy.
The GCC consists of six countries — the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait.
The two sides began negotiations for a bilateral free trade deal in 2007, which were suspended in 2010. After a 13-year hiatus, they resumed talks in 2022 and have since held several rounds of negotiations.
It is South Korea’s 25th FTA.
Under the agreement, South Korea will remove tariffs on 89.9 percent of all items, including liquefied natural gas, liquefied petroleum gas and other petroleum products.
The Gulf nations will lift tariffs on 76.4 percent of all products traded, along with tariffs of 4.1 percent of goods traded.
Of major items, South Korea expects growth in exports of vehicles, auto parts, machinery and weaponry to the Arab nations through the agreement, the ministry said, adding that cheaper energy imports from the Arab nations will enhance competitiveness of South Korean exporters.
The GCC is the fifth-largest trading partner for South Korea, with trade volume between the two sides coming to US$102.6 billion in 2022, according to the ministry.
“South Korea was able to clinch the FTA with the GCC ahead of Japan, China and other major nations, and it is expected to serve as a chance for us to expand a Middle East business boom,” a ministry official said.
Japan, China and the Britain have held negotiations with the GCC for a respective free trade deal.
(Yonhap)
