S.Korea's Exports of Low Tariff Products to EU Jump 16.1 pct

South Korea's exports of low-tariff products to the European Union (EU) jumped 16.1 percent in the second half of 2011 due to benefits from the bilateral free trade agreement (FTA), a government report showed May 21, 2012.

According to the report by the Ministry of Strategy and Finance, South Korea's exports of manufactured goods subject to lower tariffs to the EU expanded 16.1 percent on-year for six months following the South Korea-EU free trade deal that took effect in July last year.

Seoul and Brussels agreed to eliminate or phase out tariffs on 96 percent of EU goods and 99 percent of South Korean products within three years after the deal was effective.

Exports of five major products, including automobiles and petroleum products, benefited heavily from a cut in tariffs. Car shipments to the EU surged 71.8 percent in the second half of last year from a year before, with refined petroleum product exports skyrocketing 235.4 percent. Exports of auto parts, tires and plastic resin grew 15.3 percent, 9.1 percent and 3.9 percent each over the cited period.

Following the implementation of the FTA, the EU lowered tariffs on automobiles manufactured by South Korean carmakers to 7-8.3 percent from the previous 10 percent, while imposing zero tariffs on petroleum products and auto parts made by South Korean manufacturers.

Meanwhile, exports of products, on which zero-tariffs were already imposed before the bilateral free trade accord, shrank 29. 1 percent in the second half of last year from the previous year. Shipments of ships, integrated chips and handsets to the EU plunged 48.5 percent, 46.7 percent and 50 percent over the cited period.