Turkey, South Korea set to strike free trade agreement

Turkey, South Korea set to strike free trade agreement

ANKARA - Hürriyet Daily News
Turkey, South Korea set to strike free trade agreement

A view of the Cargo shipping section at the Busan Container Terminal in Busan Port, South Korea is seen. The counry’s imports reached $524 billion last year. EPA photo

Turkey and South Korea will sign an historic free trade deal to prevent inequities Turkish exporters face in the Asian country on Aug. 1, Economy Minister Zafer Çağlayan has said.

“This will be Turkey’s first free trade agreement in the Far East,” Çağlayan said in a press release yesterday.

“Thanks to the agreement, Turkish exporters will have the chance to compete with EU and U.S.
exporters equally in the Korean market,” he said.

Tariff advantages to start immediately
“With the implementation of the agreement, the goal is to restructure the trade deficit [with South Korea], which is 1/12 to the detriment of Turkey and make it more balanced, strengthen the cooperation opportunities between the businessmen of the two countries and increase Korean investments in Turkey.”
With the trade deal the parties will cut some 90 percent of current trade tariffs in 10 years’ time.

A signature ceremony will be held in Ankara that day for the deal, which will be valid after the official approvals in both countries.

Some 93 percent of the Turkish exports to South Korea will be tariff-free with the start of the implementation of the deal. The Korean side will achieve such an easing in seven years, Çağlayan said.
South Korea’s imports volume was around $524 billion last year.