Exports have benefited from FTAs with EU, U.S.

Home > Business > Economy

print dictionary print

Exports have benefited from FTAs with EU, U.S.

Free trade deals with the United States and the European Union have helped support Korea’s exports, making up for declining overseas sales of the country’s goods affected by the prolonged global economic slump, customs data showed yesterday.

Korea implemented free trade agreements with the U.S. and the EU in March of this year and July of last year, respectively.

The worldwide economic slump led to a drop or relatively small growth in exports to those markets but sales of products benefiting from lower tariffs remained strong.

According to a report by the Korea Customs Service (KCS), total exports to the EU came to $67.21 billion in the 16 months since the FTA with the region went into effect. That is a 10.2 percent decline from the same period before the pact took effect.

However, exports of products benefiting from tariff reductions rose 10.9 percent over the same period. In particular, exports of automobiles, car components and oil products increased 15.2 percent, 6.6 percent and 17 percent, respectively, suggesting the FTA is helping to boost bilateral trade with one of the world’s largest economic blocs.

A similar trend is holding true with the U.S. The report showed that exports to the U.S. amounted to $37.3 billion from March 15 when the FTA went into effect until late October, up 2.1 percent from the same period a year earlier.

Exports of products benefiting from the FTA, however, fared better by growing 12.9 percent. Automobiles, oil and rubber products saw their sales in the world’s largest economy grow 15 percent, 8 percent and 14 percent, respectively, the report showed.
“Consumers in those areas also seek cheaper products, which makes products enjoying tariff reductions more popular,” a KCS official said. “This trend is likely to continue.”


Yonhap

More in Economy

Gangbuk beats Gangnam

600,000 jobs added last year, but many public or welfare

Consumer price gains pick up speed in November

Life expectancy up 7 months for Koreans born in 2019

OECD knocks tenth of a point off Korea's 2020 growth

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now