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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 Singapore Asia Pacific World Italy holds out on EU-South Korea free-trade deal AFP - Saturday, September 11 Send IM Story Print Italy holds out on EU-South Korea free-trade deal Slideshow: Full Photo Coverage: Business & Economy BRUSSELS (AFP) - – Italy on Friday refused to sign a free-trade deal the European Union wants to reach with South Korea, citing reservations on its impact on its auto industry. "My Italian colleague has expressed clearly considerations that made it difficult at this time to join the rest of the member states in agreeing on decisions," Belgium's foreign minister said. Steven Vanackere said it was "not possible to definitely and absolutely confirm that an agreement is possible," but insisted: "We hope able to finalise (the deal) on Monday... with the explicit aim of signing by October 6 at the latest," at an EU-South Korea summit. A senior European diplomat said there remained fears among delegations that Italy could try to hold out until a summit of national leaders in Brussels next Thursday. Prime Minister Silvio Berlusconi "could use something to wave about back home right now," he said. A compromise proposal by partners to delay the deal's implementation until April was in the offing, he added. Italy did not want to commit to any decision before the end of June, having initially asked for a 12-month moratorium, others said. Most observers said Rome is expected to give in to pressure from partners with foreign ministers taking up the talks over the weekend. Rome feared its auto sector -- with a particular concern for Fiat's range of small cars threatened by the lowering of tariffs on rival Hyundai models -- would suffer badly under the package. Berlusconi is struggling on the domestic political front and Rome warned publicly on Tuesday that it could veto the deal, which requires ratification by all 27 EU member states and the European parliament. "We have asked for changes, especially for the auto sector, but unfortunately our suggestions were not accepted," junior minister for foreign trade Adolfo Urso said earlier this week. Seoul has also to make parallel changes to Korean legislation on the sector's carbon emissions. Two-way trade last year between the EU and Seoul was worth some 79 billion dollars (62 billion euros). Meanwhile, ministers did decide to "start negotiations" with Malaysia on a similar deal, as well as to broach talks with China on protecting products with specific georgraphical branding. Recommend Send IM Story Print Related Articles CORRECTED: Indexes end up on better outlook Reuters - 20 minutes ago US-BUSINESS Summary Reuters - 22 minutes ago CORRECTED - US STOCKS SNAPSHOT-Indexes end up on better outlook Reuters - 28 minutes ago FOREX-Dollar rises against yen on solid Chinese data Reuters - 29 minutes ago Toys R Us posts quarterly loss Reuters - 38 minutes ago News Search Top Stories Recession has left huge hole: Obama Obama presses Israel to extend settlement freeze Irish bank AIB sells Polish assets to Santander Combat climate change with less gassy diet for cows: study Paramount to open theme park in Spain More Top Stories » Related Full Coverage Free TradeFree Trade All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended US pastor puts Koran-burning on hold Wall Street's super traders come under fire Climate: New study slashes estimate of icecap loss Iran to free female US hiker Nokia appoints Microsoft executive as new CEO More Most Viewed » Climate: New study slashes estimate of icecap loss Earth's upper atmosphere shrinking, scientists say Tiger's ex breaks her silence on sex scandal Japanese rider Tomizawa dies in San Marino Moto2 GP 78-year-old woman found alive after week missing in Alps More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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