Colombia agrees to end tariffs on Korean textiles

26 Jun '12

2 min read

Colombia has agreed to eliminate tariffs on textiles and apparel items from South Korea at the conclusion of free trade talks, the sixth round of negotiations held since late 2009 between the two nations.

The end of talks will lead to Korea-Colombia Free Trade Agreement (FTA) and create an institutional framework and favorable environment for trade and investment between the two countries.

Under the agreement, South Korea will treat Colombia as a gateway to South America, and Colombia will treat South Korea as a gateway to Asia, South Korean President Lee Myung-bak said.

While no date has yet been finalized for the implementation of the Korea-Colombia FTA, the agreement is expected to go into effect during the first half of 2013, after it receives parliamentary approval in both nations.

The FTA envisages elimination of tariffs on 96.1 percent of Colombian goods and 96.7 percent of South Korean goods within ten years from the date of the agreement’s coming into force.

As per the FTA, Colombian tariffs on textiles and clothing from South Korea would end either immediately or within seven years.

In 2011, South Korea exported goods worth US$ 2 billion to Colombia, which is considered insignificant compared to exports to other Korean trading partners. However, Colombia is considered as a country with huge growth potential is counted among the emerging markets.

The deal has made South Korea the first Asian country to have a FTA with Colombia.

Fibre2fashion News Desk - India

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