South Korea, Turkey To Conclude FTA

by Mary Swire, Tax-News.com, Hong Kong

07 February 2012

Following a meeting in Istanbul between South Korea’s President Lee Myung-bak and the Turkish Prime Minister Recep Tayyip Erdogan, it was agreed that the two countries should conclude their talks on a free trade agreement (FTA) as early as possible.

The first stage of talks on the bilateral FTA began in April 2010, with the latest round being held in March this year. It has previously been said that, while the two sides are close to agreement on their trade in goods, there were still differences over such issues as services and investment.

However, it is thought that the differences can be solved relatively easily, and it is hoped that an agreement can be concluded in the first half of this year.

South Korea recognizes Turkey’s importance as a gateway to Europe, the Middle East and Central Asia, and South Korean companies are interested in making substantial investments in Turkey, in such areas as nuclear power, construction, steel-making and electronic products.

South Korea’s exports to Turkey currently dominate the trade relationship - amounting to some USD3.75bn in 2010, with its imports from Turkey reaching only around USD500m. However, Turkey would hope that its agricultural and textiles exports would be able to benefit from any future agreement.

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