EU approves FTA with Korea

BRUSSELS -- The European Union (EU) approved a free trade agreement with South Korea on Thursday, clearing the way for the accord to be signed in the near future, diplomats said.

Foreign ministers from the 27-member bloc agreed to allow the trade pact to take provisional effect on July 1, 2011, as Italy dropped its veto in return for a six-month delay to the treaty's start, they said.

South Korea and the EU are expected to sign the pact at a summit in Brussels on Oct. 6. The treaty will come into full effect once EU member states, the European Parliament and South Korea have ratified it.

The two sides initialed the free trade deal in September of last year, three months after concluding negotiations.

Last month, South Korea's Cabinet approved the accord. The pact must be ratified by South Korea's parliament, EU member states and the European Parliament.

"The European Union is the world's No.1 economic bloc and South Korea's second-largest trading partner," Seoul's trade ministry said. "The pact will bring about economic benefit more than a free trade pact signed with the U.S."

Belgian Foreign Minister Steven Vanackere, whose country holds the union's rotating presidency, said the pact "will create prosperity and jobs across Korea and also in Europe."

Last year, two-way trade totaled US$78.8 billion, with South Korea enjoying a surplus of $14.38 billion. In 2008, bilateral trade reached $98.4 billion.