SKorea formally decides to open trade talks with EU

(SEOUL) - South Korea's government Tuesday gave formal approval for the start of free trade talks with the European Union, one month after wrapping up a landmark deal with the United States.

Economy-related ministers approved the plan to hold the first round of negotiations from next Monday to Friday in Seoul.

Trade Minister Kim Hyun-Chong and European Commissioner for External Trade Peter Mandelson will officially announce the round at a press conference on Sunday.

The government said five or six rounds of negotiations will be held this year and talks are expected to be completed in about a year.

South Korea, Asia's third-largest economy, has been holding preliminary talks with the EU for about a year. Two-way annual trade is worth around 71 billion dollars compared to 78 billion dollars between Seoul and Washington.

Seoul's deal with the US, expected to boost commerce by billions of dollars a year, followed 10 months of tough bargaining and occasionally violent protests.

Officials expect talks with Europe to be less contentious since both sides want to continue protecting their farmers.

President Roh Moo-Hyun, speaking after a meeting with visiting Italian Prime Minister Romano Prodi last month, said they "shared a common understanding of the enormous economic effects" which a free trade pact with the EU would have.

The deal with the US was reached despite fierce opposition by many South Koreans, he said, but talks with the EU "may not run into any significant resistance."

South Korea has signed FTAs with Chile and Singapore and one with the Association of Southeast Asian Nations, excluding Thailand, will take effect on June 1.

It is pushing for a pact with Canada and in June is set to begin a second feasibility study with China on a potential deal.

China is South Korea's largest trading partner, with two-way trade reaching 134 billion dollars last year, followed by Japan and the US.