S Korea, EU to Hold High-Level Free Trade Talks

Trade Ministers from South Korea and the European Union (EU) will hold high-level free trade talks in Seoul this afternoon, Trade Ministry said Monday.

According to the Ministry, South Korean Trade Minister Kim Jong-hoon and EU counterpart Catherine Ashton will meet for two days to resolve contentious issues such as auto trade and rules of origin.

"This week's meeting is very crucial as both sides are seeking to resolve some sticky issues," said an official at the Trade Ministry.

The negotiations have been making slow progress as two sides remained reluctant to accept the other's demands on tariff reductions, rules of origin, auto trade and auto-related technical standards.

However, at the last month's meeting, chief negotiators said they made huge advance.

EU is South Korea's second-largest trading partner after China and bilateral trade between the two sides reached 93.07 billion U.S. dollars in 2007.

EU is also the largest foreign investor in South Korea, with 43.40 billion U.S. dollars of outstanding investment at the end of 2007.

South Korea has held seven rounds of negotiations with the EU so far in a bid to gain greater footing in the 27-nation economic bloc.

A date for the eighth round of talks has not yet been set, but the Trade Ministry said within the first quarter of the year both sides would be able to strike a deal.