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Exports to the region hit $19.5B last year, second only to Europe at $23B
November 10, 2009
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| The government will initiate a negotiation for a free trade agreement with Colombia this month at the earliest, according to the Ministry of Strategy and Finance yesterday. The preparation for forming an FTA with other Latin American countries will also be accelerated, with the investment in natural resources in the region to be raised substantially, the ministry said. These plans are part of Korea’s comprehensive measures to improve its economic ties with Latin America, co-drafted by 15 ministries and announced by the Finance Ministry. The announcement came a day before the beginning of the two-day high-level forum on Korea-Latin America and the Caribbean Partnership in Seoul. Latin America has been the latest consideration for Korea, a heavily export-driven economy that has strived to diversify its trade partners. As rich in natural resources as Africa, the region’s economy has grown 5.4 percent on average every year for the past five years. Its trade with Korea has tripled since 2004, emerging as the second biggest net importer of Korean products. Korea posted $19.5 billion in net exports to Latin America last year, second only to Europe, with $23 billion. According to the ministry, increased cooperation with Latin America will partly be sought through trade pacts. “It is very likely that we will initiate negotiations with Colombia for a free trade agreement this month,” said Kim Tae-hoon, a deputy director of the ministry. If so, Colombia will be the fourth Latin American country with whom Korea has initiated an FTA roundtable. Korea signed an FTA with Chile in 2002, and then initiated negotiations with Mexico in 2006, though that FTA has been suspended for now. Talks with Peru have also been under way this year. The ministry said the process for discussing an FTA with Mercosur - an economic bloc comprising Brazil, Argentina, Paraguay and Uruguay - will also get into a critical stage, with the two parties forming a joint consultative group next year. But it’s not just trade. The ministry said the government will also raise cooperation with Latin America on such areas as resources, energy, green growth and infrastructure. For instance, a project to develop oil or gas fields off the coast of Venezuela, Peru and Colombia will be initiated, the ministry said. Joint research with Brazil is also being planned for developing new grains and securing technologies for producing them. “We will launch a pan-government drive to build a win-win, future-oriented economic partnership with Latin America,” said the ministry in a statement. By Moon Gwang-lip [joe@joongang.co.kr] |
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