EU proposes complete elimination of tariffs

(SEOUL) - The European Union has called for the complete elimination of tariffs in its proposal to South Korea before a second round of free trade negotiations, officials said Tuesday.

South Korea offered to scrap all tariffs on industrial goods. But it suggested that rice be excluded from any deal and that tariff cuts be delayed on 150 other agricultural and fisheries goods, the Ministry of Foreign Affairs and Trade said.

"The proposal was contained in a draft text on tariff concessions, which was exchanged by both sides recently," a ministry official told AFP on condition of anonymity.

Asia's third largest economy and the world's biggest trading bloc began talks in May and will hold a second round starting July 16 in Brussels.

At the first round in Seoul both sides agreed in principle to scrap about 95 percent of each other's tariffs on merchandise. South Korea's average tariff is 11.2 percent compared to the EU's 4.2 percent.

Rice was excluded from a free trade deal signed by Seoul and Washington on June 30, which awaits approval by the legislatures of both countries.

"Both sides will conduct the talks in a practical and constructive manner," deputy trade minister Kim Han-Soo told Yonhap news agency, adding the two sides agreed not to use "bluffing" as a negotiating tool to press one another.

The EU was South Korea's second largest trading partner after China last year, with trade reaching 78.56 billion dollars. It is the biggest single foreign investor, committing 4.97 billion dollars last year alone.

South Korea wants to gain more access to the EU market for auto parts, electronics and textiles. The EU wants Seoul to remove barriers on automobiles, pharmaceuticals, chemicals and cosmetics.

Meanwhile, a group of nine South Korean legislators left for Washington Tuesday to muster support for the pact amid concerns that the US Congress may not approve it.

Some Democratic lawmakers have vowed to vote against the pact unless it is amended to lower South Korea's non-tariff barriers especially in the auto industry.

A forum with US representatives will take place on Wednesday, followed by meetings with Christopher Hill, US assistant secretary of state for East Asian and Pacific affairs, and US Deputy Trade Representative Karan Bhatia, Yonhap news agency said.