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Pact boosts South Korea-ASEAN trade
The Korea-ASEAN Free Trade Agreement in 2007 has significantly increased trade between the two sides, a Korean foreign ministry official said.
Speaking at the Korea-ASEAN FTA Forum in HCM City on Thursday, Lee Yun Young, deputy director general for FTA Policy in the Ministry of Foreign Affairs and Trade, said trade expanded by over 23 per cent in 2008, the first year after the treaty came into force.
It was worth US$75 billion last year and is forecast to top the $100 billion mark this year, he said, pointing out it was worth $47.1 billion in the first half, 39.4 per cent up year on year.
ASEAN became Korea's third largest trading partner in 2008 behind only China and the EU, he said.
Na Jong-tae from the FTA Implementation Division's Korea Customs Service said trade with Viet Nam jumped from $7.2 billion in 2008 to $9.5 billion last year.
Almost two-thirds of Viet Nam's top 50 export items to Korea received preferential treatment under the FTA last year, he said.
More than 81 per cent of items exported by Korea and ASEAN members are exempt from tariffs.
"However, only a few businesses in ASEAN countries are using the FTA effectively due to lack of understanding and knowledge," Lee said, noting that the current utilisation rate is below 20 per cent.
If the rate reaches 90 per cent like the Korea-Chile FTA, the effect achieved by the FTA will be enormous, he said.
The two sides proposed measures to improve the rate during talks at the ASEAN Economic Ministers Meeting last month, he said.
They include quickly improving minor procedures, creating an approved exporters system, introducing a system of self-certification of origin, and promoting economic co-operation to develop customs administration in ASEAN countries.
vietnamnews
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