Political Risk Latin America Blog @PolRiskLatam

S.Korea, Peru ink free trade agreement

Posted in News and Articles, Political Risk by politicalrisklatam on November 15, 2010

by The Agence France-Presse, November 15th, 2010.

South Korea Monday signed a free trade agreement with Peru, the latest in a series of such deals by Seoul as its trade pact with Washington remains stalled. The deal was initialled by the two countries’ trade ministers in the presence of President Lee Myung-Bak and his visiting Peruvian counterpart Alan Garcia.

“This is a highly comprehensive free trade pact… it will offer great opportunities for companies in the auto industry,” Garcia told reporters before the ceremony. He emphasised it would also offer more investment opportunities in his country’s potentially massive natural gas and other energy resources.

“This FTA will greatly boost the two countries’ cooperation in petrochemical and refinery businesses as well… it is highly important for us that South Korean companies invest in our gas development projects,” Garcia said. Peru started exporting its natural gas this year and is seeking foreign investment to build more gas pipelines. Seoul in August completed negotiations with Peru, for what will be its second trade pact with a Latin American country after Chile.

The deal with Peru will eliminate tariffs on major industrial products from South Korea including cars and electronics products, while removing tariffs on Peruvian farm products such as coffee and squid. It will scrap all tariffs currently in place within the next 10 years. Two-way trade totalled 1.56 billion dollars in 2009. The pact is expected to be signed and ratified by legislatures in both countries in the first half of next year, Seoul’s trade ministry said. (continue reading… )

 

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