Republic of Korea, Gulf Cooperation Council Sign Free Trade Agreement – Reports

MOSCOW, December 28 (Sputnik) – Republic of Korea has signed a free trade agreement (FTA) with the Gulf Cooperation Council in Seoul with a view to boosting export competitiveness and energy security, media reported on Thursday, citing the South Korean Ministry of Trade, Industry and Energy (MOTIE).

“Republic of Korea was able to clinch the FTA with the GCC ahead of Japan, China and other major nations, and it is expected to serve as a chance for us to expand a Middle East business boom,” a ministry official said, as quoted by the Yonhap news agency.

Republic of Korean Minister of Trade, Industry and Energy Ahn Duk-geun and Secretary General of the Gulf Cooperation Council (GCC) Jasem Mohamed Albudaiwi have signed a joint declaration to ink the bilateral free trade agreement after a 13-year hiatus in the trade deal negotiations, the report said. South Korea and the GCC resumed the talks in 2022 and held several rounds of negotiations, the report also said.

The trade agreement commits Republic of Korea to lifting tariffs on 89.9% of traded items, including liquefied natural gas, liquefied petroleum gas and other petroleum products, the news agency reported. The GCC, which unites six monarchies — Bahrain, Kuwait, Saudi Arabia, the United Arab Emirates, Oman and Qatar — will remove tariffs on 76.4% of all products and on 4.1% of traded goods, the report added.

Seoul expects to boost exports of vehicles, car parts, machinery and weaponry to the Gulf nations, while “cheaper” energy imports from the Arab bloc will “enhance competitiveness” of Republic of Korean exporters, according to the report.

The bilateral trade between Republic of Korea and the GCC totaled $102.6 billion in 2022, the report said.