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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Singapore Asia Pacific World S.Korea, Peru ink free trade agreement AFP - Monday, November 15 Send IM Story Print S.Korea, Peru ink free trade agreement Slideshow: Full Photo Coverage: Business & Economy SEOUL (AFP) - – 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. South Korea also has free trade pacts with India, the Association of Southeast Asian Nations, Singapore and the European Free Trade Association. A pact with the European Union awaits ratification. The deal with the United States was signed in 2007 but has hit problems, with US automakers and beef exporters demanding greater access. At their meeting Thursday, Lee and President Barack Obama acknowledged negotiators had failed to settle differences on the agreement, despite a push to reach a deal before the November 11-12 G20 summit in Seoul. Obama said he was "confident" the free trade agreement (FTA) would be completed, while Lee said trade ministers would be told to reach an acceptable conclusion as soon as possible. But the failure was still seen as embarrassing given the close ties between the leaders and their two countries. It "is not the right signal to send to an Asia that considers US determination to pass the FTA as the acid test for whether the United States can return to a leadership position on trade", said Ernest Bower, of the Center for Strategic and International Studies in Washington, in a commentary. The Peruvian president arrived Sunday for a three-day stay. He is also scheduled to tour the Ulsan Petrochemical Complex in the city southeast of Seoul and meet business leaders. Recommend Send IM Story Print Related Articles TREASURIES-Ten-yr yield hits two-month high in Asia Reuters - Monday, November 15 JGBs hit as spike in US yields dampens sentiment Reuters - 2 hours 53 minutes ago India Reliance Comm eyes 3G by year-end Reuters - Monday, November 15 Nikkei gains on yen, GDP but lacks momentum Reuters - Monday, November 15 Hyundai Group joins final bidding for Hyundai E&C Reuters - 2 hours 30 minutes ago News Search Top Stories Muslim pilgrims pour into Mina as the hajj begins Nobel laureate backs US 'easy money' policy In Afghan south, US troops turn from battle to building Sushi wars: fight looms over bluefin tuna Binladin group wins $7.2 bln Jeddah contract More Top Stories » Related Full Coverage Free TradeFree Trade All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Travolta jets home as wife goes into labour Property bubble fears weigh on Spanish recovery 'Naked' airport scanners may be 'dangerous' Binladin group wins $7.2 bln Jeddah contract Muslim pilgrims pour into Mina as the hajj begins More Most Viewed » Alcohol more harmful than heroin, crack cocaine: study Toddler survives seven-floor fall in France Spectacular unknown species found in Amazon EU fines 11 airlines 800 million euros for air cargo cartel Be fit, have fewer colds: study More Most Recommended » Elsewhere on Yahoo! 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