Carmakers, shipyards to benefit from EU FTA

Korean carmakers, shipbuilder and mobile communications equipment makers will be the main beneficiaries of the nation’s free trade agreement with the EuropeanUnion.

The trade pact is due to be signed Wednesday in Brussels, and scheduled for tentative implementation next July 1.

According to a Samsung Economic Research Institute’s report, the pact will result in Korea’s gross domestic product growing by 3.08 percent, will boost Korea’sexports to the region by 12.8 billion euros ($17.5 million) and will push up Korean products’ share of the market to 3.9 percent.

Much of the rise in exports is expected to be seen in Korea’s top export items that are ships, mobile communications equipment, and automobiles. 

Ships accounted for 26.2 percent of Korea’s overall exports to the region in that year, while mobile communication equipment and automobiles respectively took up 10.7 percent and 5.8 percent.

Although the shipbuilding and mobile communication equipment industries are cited among those most likely to benefit, the effects will not be direct results of removal of tariffs.