The Korean-EU Free Trade Agreement, also known as the Korean-EU Partnership Agreement or KEPA, came into effect on July 1, 2011. This agreement was signed to strengthen the economic ties between the EU and South Korea, which is one of the EU`s most important trading partners in Asia.
The KEPA agreement is comprehensive and covers various aspects of trade, including trade in goods, services, and investment. One of the key objectives of the agreement is to eliminate tariffs on almost all products traded between the EU and South Korea. This has had a significant impact on the economic relationship between the two regions, as it has led to increased trade flows and a boost in economic growth.
South Korea has a thriving automotive industry, and the KEPA agreement has helped to increase exports of Korean cars to the EU. As part of the agreement, the EU reduced tariffs on Korean cars, making them more competitive in the European market. This has led to a significant increase in Korean car exports to the EU, which has helped to create jobs and stimulate growth in the Korean economy.
The KEPA agreement also includes provisions on intellectual property rights, public procurement, and sustainable development. These provisions aim to promote fair competition, protect intellectual property, and ensure that trade is carried out in an environmentally sustainable manner.
In addition to promoting trade and economic growth, the KEPA agreement has also helped to strengthen the political and cultural ties between the EU and South Korea. The agreement provides a framework for cooperation in areas such as education, research and development, and cultural exchange.
In conclusion, the Korean-EU Free Trade Agreement is a crucial agreement that has had a significant impact on the economic relationship between the EU and South Korea. By eliminating tariffs and promoting fair competition, this agreement has helped to increase trade flows and boost economic growth. It has also helped to strengthen political and cultural ties between the two regions.