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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: SKorea, EU aim to make progress on FTA at summit By KELLY OLSEN,AP Business Writer AP - 2 hours 16 minutes ago SEOUL, South Korea - South Korea and the European Union hope to use a weekend summit to make progress on a stalled free trade agreement and lay the groundwork for expanded relations. ADVERTISEMENT An EU delegation led by European Commission President Jose Manuel Barroso and Czech President Vaclav Klaus planned one-day talks Saturday with South Korea President Lee Myung-bak. The Czech Republic holds the rotating EU presidency. South Korea and the EU are trying to nail down a free trade deal but have been hindered by differences over refunds South Korea pays to local companies who import parts from third countries before exporting finished goods. The 27-member EU does not accept the practice, known as duty drawback, in its free trade agreements. European automakers have also expressed concerns about the deal as South Korea enjoys a huge trade surplus in vehicles. Chief negotiators for the two sides reached a tentative agreement in March after nearly two years of negotiations, but left key issues of a "political nature" _ including duty drawback _ for higher-ranking officials to resolve. That has not proven easy so far. South Korean Trade Minister Kim Jong-hoon and EU Trade Commissioner Catherine Ashton were unable to achieve a breakthrough during talks on the sidelines of the Group of 20 summit in April. "A comprehensive free trade agreement is now within reach," Ashton said in an EU statement earlier this week. "We will continue to work on the remaining issues with a view to delivering a deal that will create growth and jobs for both sides." A South Korean Foreign Ministry official said Friday that a deal was unlikely to be announced this weekend, though expressed hope one could be completed next month. He spoke on condition of anonymity, citing sensitivities ahead of the summit. The EU and South Korea are major trade partners _ $98.4 billion worth of goods in 2008. The EU is South Korea's second-largest trading partner after China and is its largest foreign investor. Auto trade heavily favors South Korea. South Koreans bought 32,756 vehicles from EU states last year, while South Korea exported 408,934 vehicles to the EU. EU manufacturers accounted for 53.1 percent of South Korea's imported vehicle market. The summit will be the fourth between South Korea and the EU, though will be the first time one will be held in South Korea. Previous summits took place on the sidelines of broader meetings. Other issues expected to be discussed are North Korea, the global financial crisis and climate change. The EU said earlier this week that besides reviewing progress so far on the free trade deal, the two sides will discuss a planned updating of their existing EU-Korea Framework Agreement. Besides Ashton, EU External Relations Commissioner Benita Ferrero-Waldner will accompany Barroso and Klaus. The delegation was to arrive in South Korea after participating in a summit with Russia in Khabarovsk in the country's Far East. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: Free Trade SKorea, EU aim to make progress on FTA at summitAP - 2 hours 20 minutes ago Ag leaders see free trade as buffer against recessionReuters - Tuesday, May 19 US, SKorea to address free trade pact concernsAFP - Friday, May 15 Autos key as U.S., South Korea trade chiefs meetReuters - Friday, May 15 Related Articles: Business SKorea, EU aim to make progress on FTA at summitAP - 2 hours 20 minutes ago Bank of Japan upgrades assessment of economyAP - 2 hours 22 minutes ago Asian markets fall as investors rethink rallyAP - 2 hours 43 minutes ago Virgin chief hits back over sexism chargeAFP - 2 hours 59 minutes ago China's Shenzhen wants to spread: reportAFP - Friday, May 22 Related Full Coverage Free Trade Free Trade All Full Coverage Most Popular – Business Viewed Vitamin D boosts brain power in middle-aged men ABN Amro says up to 5,000 job to go in merger Popular cereal is a drug, US food watchdog says S&P issues warning on UK economy credit rating Explorer Ranulph Fiennes climbs Everest View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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