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BackSouth Korea shall implement the core labour standards adopted by the International Labour Organisation (ILO), demanded several MEPs at a workshop in the European Parliament, which was held to mark the first anniversary of the EU-South Korea Free Trade Agreement (FTA). Even though, Korea is a member of ILO, she still has not implemented all core labour standards, such as the collective bargaining convention, non-discrimination at work or the forced labour convention. Meanwhile, Trade Commissioner de Gucht took the opportunity to praise the positive developments concerning the trade between the EU and South Korea.
European Commission und South Korea praise their bilateral Trade Agreement
To begin the debate, EU Trade Commissioner Karel de Gucht praised the Trade Agreement of the EU with South Korea: this was the first bilateral Trade Agreement, which was removing trading obstacles of all kinds. This Agreement was also an example for bilateral agreements with other third countries. It would cover the automobile industry as well as the pharmaceutical and electronics sector. Access to public procurement had also been created. It was too early to comment on its effects as the Agreement had to develop its full powers. However, there were first figures which in spite of the economic crises gave raise to optimism: for example, compared to average exports of the last 4 years, exports in the engineering and textile sector had risen by more than 50 percent. Things were moving in the right direction. Apart from that, the European Union had succeeded in concluding negotiations with South Korea on the Trade Agreement 2 years earlier than the United States.
The South Korean Minister for Trade Bark Taeho also emphasised the positive aspects of the Agreement: two thirds of the 27 EU Member States had recorded positive effects in their trade balances. For example, ca. 85 percent more diesel vehicles had been exported to South Korea, which had in particular benefited Germany and Great Britain. France had succeeded in exporting more chemical and luxury products to South Korea. In 2012, however, South Korean exports to the EU so far had fallen by 11 %. But taking a closer look at the products, which were not subject to trading obstacles, one could see that this figure had increased by 14 %. Both sides would see more benefits once the global economy had recovered. Nevertheless, prior to the Agreement many South Koreans had taken to the street to protest against the Agreement. The EU-South Korea Free Trade Agreement was also playing a role in the elections informed the South Korean Minister for Trade Bark Taeho.
Scientists too see positive effects
Overall, Stephen Woolcock of the London School of Economics sees positive effects as a result of the EU-South Korea Free Trade Agreement. However, it was too early to assess the actual impact of the Agreement. However, the trend for the EU so far was looking positive. One should also point out that in spite of the fact that trading with goods had declined, service exports were on the increase. 70 % of all profits were generated by trading with services in the telecommunication, finance and insurance sectors. Nevertheless, a slight weakening had to be expected due to the new Agreement between South Korea and the United States. During the first year, South Korea’s great winner was the automobile industry, even though it fell short of expectations. Once the Agreement was efficiently implemented, there should be a greater balance between the EU and Korea said an optimistic Stephen Woolcock.
MEPs insist on implementation of ILO Core Labour Standards
MEPs Bernd Lange of the Social Democrats and Helmut Scholz of the Left urged South Korea to implement the ILO Core Labour Standards. South Korean Minister for Trade Bark Taeho pointed out that South Korea was a member of the ILO and that his country too had an adequate labour law. However, South Korea would consider this matter carefully. Bark also promised to provide the Trade Committee with further relevant information. MEP Henri Weber (S&D) voiced disappointment that labour standards in respect of the USA-South Korea Agreement were obviously going much further than in case of the EU-South Korea Free Trade Agreement. In addition, Weber was also concerned that compared to the same quarter in the previous year, 10 times more diesel vehicles than ever before had been imported from South Korea. Lange underlined his concern by asking whether it was correct that an application had already been made to apply the bilateral protection clause to the automobile sector. De Gucht informed that France had applied for priority monitoring of the trade flows, which, however, had nothing to do with the protection clause. The Commission would report on the results on Friday.
Which impact the Agreement with South Korea would have on the EU’s foreign trade would only become apparent once the Agreement had been fully implemented. With regard to ILO Core Labour Standards one could only hope that South Korea would keep her promise and actually integrated them into national law.
To begin the debate, EU Trade Commissioner Karel de Gucht praised the Trade Agreement of the EU with South Korea: this was the first bilateral Trade Agreement, which was removing trading obstacles of all kinds. This Agreement was also an example for bilateral agreements with other third countries. It would cover the automobile industry as well as the pharmaceutical and electronics sector. Access to public procurement had also been created. It was too early to comment on its effects as the Agreement had to develop its full powers. However, there were first figures which in spite of the economic crises gave raise to optimism: for example, compared to average exports of the last 4 years, exports in the engineering and textile sector had risen by more than 50 percent. Things were moving in the right direction. Apart from that, the European Union had succeeded in concluding negotiations with South Korea on the Trade Agreement 2 years earlier than the United States.
The South Korean Minister for Trade Bark Taeho also emphasised the positive aspects of the Agreement: two thirds of the 27 EU Member States had recorded positive effects in their trade balances. For example, ca. 85 percent more diesel vehicles had been exported to South Korea, which had in particular benefited Germany and Great Britain. France had succeeded in exporting more chemical and luxury products to South Korea. In 2012, however, South Korean exports to the EU so far had fallen by 11 %. But taking a closer look at the products, which were not subject to trading obstacles, one could see that this figure had increased by 14 %. Both sides would see more benefits once the global economy had recovered. Nevertheless, prior to the Agreement many South Koreans had taken to the street to protest against the Agreement. The EU-South Korea Free Trade Agreement was also playing a role in the elections informed the South Korean Minister for Trade Bark Taeho.
Scientists too see positive effects
Overall, Stephen Woolcock of the London School of Economics sees positive effects as a result of the EU-South Korea Free Trade Agreement. However, it was too early to assess the actual impact of the Agreement. However, the trend for the EU so far was looking positive. One should also point out that in spite of the fact that trading with goods had declined, service exports were on the increase. 70 % of all profits were generated by trading with services in the telecommunication, finance and insurance sectors. Nevertheless, a slight weakening had to be expected due to the new Agreement between South Korea and the United States. During the first year, South Korea’s great winner was the automobile industry, even though it fell short of expectations. Once the Agreement was efficiently implemented, there should be a greater balance between the EU and Korea said an optimistic Stephen Woolcock.
MEPs insist on implementation of ILO Core Labour Standards
MEPs Bernd Lange of the Social Democrats and Helmut Scholz of the Left urged South Korea to implement the ILO Core Labour Standards. South Korean Minister for Trade Bark Taeho pointed out that South Korea was a member of the ILO and that his country too had an adequate labour law. However, South Korea would consider this matter carefully. Bark also promised to provide the Trade Committee with further relevant information. MEP Henri Weber (S&D) voiced disappointment that labour standards in respect of the USA-South Korea Agreement were obviously going much further than in case of the EU-South Korea Free Trade Agreement. In addition, Weber was also concerned that compared to the same quarter in the previous year, 10 times more diesel vehicles than ever before had been imported from South Korea. Lange underlined his concern by asking whether it was correct that an application had already been made to apply the bilateral protection clause to the automobile sector. De Gucht informed that France had applied for priority monitoring of the trade flows, which, however, had nothing to do with the protection clause. The Commission would report on the results on Friday.
Which impact the Agreement with South Korea would have on the EU’s foreign trade would only become apparent once the Agreement had been fully implemented. With regard to ILO Core Labour Standards one could only hope that South Korea would keep her promise and actually integrated them into national law.