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Turkey and South Korea to sign a free trade agreement

Written by: Bridgewest

Turkey and South Korea have concluded negotiations for an agreement that covers the service and investment sectors. After it will be implemented, the agreement will accompany a free trade agreement for products between the two countries.
 
The negotiations for the free trade agreement (FTA) were resumed in August 2013, after Turkey and South Korea were able to narrow the remaining differences regarding the text of the agreement. South Korea’s Assistant Trade Minister, Woo Tae, declared that “The two sides reached a de facto agreement as they narrowed their remaining differences on the text of the FTA”. The agreement is expected to be officially signed in the first half of 2015.
 
A free trade agreement for more than products
 
This agreement is the first trade pact signed by Turkey in the service and investment sector. The country has signed Fair Trade Agreements before, but until now only regarding products. Last year, Turkey signed a separate FTA with South Korea for products. The bilateral trade between the two countries has grown with more than 30 percent, to approximately 6.3 billion dollars. 
 
South Korea’s Trade Ministry recognizes the potential of the new trade agreement with Turkey and he said, in a press release, that "the service, investment FTA will help expand economic relations between South Korea and Turkey by upgrading the South Korea-Turkey FTA, which has been limited to products, to a comprehensive, high-level FTA."
 
The annual bilateral trade between Turkey and South Korea in the service sector currently produces approximately 740 million dollars. The overall commercial relations between South Korea and Turkey are constantly improving and many companies are choosing to invest in Turkey. There are more than 200 South Korean companies currently operating in Turkey.
 
According to the Agreement on Trade, Turkey and South Korea undertake to eliminate customs duties, in a time span of 10 years. Customs duties will first be removed on all industrial goods, in approximately 7 years, and by the end of the 10 years customs duties will also be removed on the agricultural goods traded between the two countries.
 
 

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