Robert Sturdy

The Free Trade Agreement (FTA) with South Korea will bring about an unparalleled series of tariff liberalisation and dismantling of technical barriers to trade, enabling EU businesses to gain extensive and comprehensive access to the Korean marketplace. It will immediately remove €1.6 billion of export duties levied annually on EU exporters of industrial and agricultural products, and €1.1 billion levied on Korean exporters. The deal is expected to save the EU agricultural industry €380 million, whilst the services sector (inducing financial services, telecoms and environmental services) could expect to see a 70% rise in trade volume.

The trade committee this week began deliberating Mr Sturdy’s proposal for the parliament to grant assent to the wider agreement, with a vote expected in September. The committee has also today adopted a separate report which creates a safeguard mechanism, enabling the EU to restore Most Favoured Nation duty rates, if the deal threatens to cause serious injury to an EU industry.

Mr Sturdy, a member of the European Conservatives and Reformists group in the parliament, said that the committee’s adoption of the emergency safeguard element of the deal heralds the way to a swift vote in the parliament on the whole agreement. MEPs now have the power of consent regarding international trade deals following the entry into force of the Lisbon Treaty.

Mr Sturdy said:

“We often hear rhetoric about the dangers of resorting to protectionism in the economic downturn but this FTA clearly demonstrates to the world that the EU is open for business.

“Chemicals, pharmaceuticals, iron and steel, auto parts, shoes, spirits and medial equipment exporters will all see substantial savings after tariffs are removed. Non-tariff barriers to trade such as technical standards for cars or certification procedures for consumer electronics will also be broken down.

“Of course the long-term benefits of free trade will outweigh any potential short term concerns. Nevertheless, the parliament has also adopted a safeguard clause which ensures that the FTA cannot cause unforeseen harm to EU industries. The text also ensures strict labour standards are in place to prevent unsustainable development or worker exploitation. This agreement will enable European and Korean economies to enjoy the medicine of free trade without worrying about side effects.

“I hope that the parliament’s strong show of support for the safeguard clause will now herald the way for the parliament’s swift approval of this entire historic agreement.”