MercoPress. South Atlantic News Agency

South Korea confirms interest in free trade talks with Mercosur

South Korea, Asia’s fourth largest economy is seeking to launch bilateral trade talks with Mercosur in a move to deepen links with Latinamerica according to a report from the Yonhap news agency.

Mercosur/South Korea bilateral trade reached 12 billion US dollars in 2008 with South Korea exporting 6.7 billion to the South American group which has a GDP of 2.89 trillion USD and a population of 260 million.

“We are planning to launch negotiations with Mercosur and others” said Choi Soek-young, Deputy Minister for Trade during a meeting with businessmen in Seoul and which was reported in the local press.

Both sides completed a joint feasibility study of a free trade agreement in 2007, but failed to launch negotiations. The idea of a FTA between South Korea and Mercosur was first floated in 2004, when the SK president Roh Moo-hyun made a state visit to Brazil.

Earlier this week South Korea struck a FTA with Peru, the second South American country with which Seoul has such an agreement. In 2003 South Korea signed a FTA with Chile.

“The government plans to have more free trade talks with other countries in the region”, said the Korean official who also revealed that a similar agreement is being planned with Mexico.

South Korea currently has FTA with India, the Association of Southeast Asian Nations, ASEAN, Singapore and the European Free Trade Association (EFTA) that includes Switzerland, Norway, Iceland and Liechtenstein.

Seoul is also ready to sign a FTA with the European Union. An FTA with the United States was signed back in 2007 but still is waiting for congressional ratification from both countries.