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  • KITA “Exports will Increase with the Korea-Central America FTAs”
    2019-09-30 hit 249

    KITA Exports will Increase with the Korea-Central America FTAs


    -  Analyzed the effectuation of the Korea-Central America FTAs and promising export items cars, processed beverage, tires, etc. are promising -


    Since the free trade agreements with Honduras and Nicaragua will go into effect today (October 1st), the Korea’s exports to Central America will be boosted. 


    According to the report titled, ‘The Effectuation of the Korea-Central America FTAs and Promising Export Items Utilizing the FTA’ issued by the Korea International Trade Association (Chairman, Kim Young-Ju) on October 1st, among the five countries that Korea has been working with to sign the FTAs, the pacts with Honduras and Nicaragua will come into effect from today, the domestic procedures for the agreements with El Salvador and Costa Rica have been completed, and the agreement with Panama is in the process of the ratification in the country. Once the all FTAs with the five countries come into effect, Korea will be the first Asian country to have comprehensive FTAs with the major economies in the Central America.

     

    It is expected that the Korea-Central America free trade agreements will achieve a high level of trade liberalization, as Korea will eliminate tariffs on 98-100 percent of its import items, while five Central American countries will remove tariffs on 93~99 percent of its imports.


    The report stated, "Last year, Korea's exports to five Central American countries were 2.53 billion dollars, which accounted only one to two percent of the local import market." The report anticipated,

    As the Korea-Central America FTAs will take into effect, Korea will be able to increase its local market shares of automobiles, auto parts, processed beverages, tires and accumulators that had tariff barriers in spite of the high demands.” 


    Korea and the five countries excluded rice and rice-related items from all contractual obligations, and some sensitive agricultural and fishery products were protected by concessions, tariff-rate quota (TRQ), long-term elimination and non-linear elimination.


    Meanwhile, in order to commemorate the effectuation of the FTAs, the Korea International Trade Association (Chairman, Kim Young-ju) hosted ‘Seminar on the Central American Market Entry Strategy Utilizing FTA’ as well as ‘One on One Consultation Meeting to Utilize the Korea-Central America FTAs’ at the Trade Tower in Samseong-dong. 


    Dr. Kwak Dong-cheol at the FTA Information and Business Support Center of the Korea International Trade Association said, “The Korea-Central America FTAs have established an extensive FTA network in the Americas in addition to the existing FTAs with North and South America.”


    Cho Hak-hee Cho, head of International Affairs Group of the Korea International Trade Association, said, “The effectuation of the Korea-Central America FTAs will be a good opportunity for Korean companies to utilize  the free trade agreements throughout the entire Americas by leveraging the Central American region and diversify their export markets.” He also stressed, Korean government’s active efforts are required to effectuate the free trade pacts with the other three countries, such as Costa Rica, El Salvador and Panama in the near future.”  



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