S. Korea's trade deal with 5 Central American nations to take effect from Oct. 1st
- 5 years ago
South Korea's free trade deal with five Central American nations will start to take effect from tomorrow.
It is expected to benefit not only Korean firms but also consumers, who could see lower coffee prices.
Our Seo Eunkyung has more.
According to the Ministry of Trade, Industry and Energy on Monday, South Korea's free trade agreement with five Central American countries will begin to take effect at the start of October.
The agreements with Honduras and Nicaragua have been fully ratified by both sides and will take effect from October 1st.
The trade agreements with Costa Rica, El Salvador and Panama will also come into effect as soon as those countries ratify the agreement and notify South Korea.
The trade deal will eliminate tariffs on both sides immediately or in stages for more than 95 percent of all traded items.
With this new trade deal, customers in Korea are expected to enjoy coffee at cheaper prices.
Coffee was one of the top three imported items from the five Central American countries last year, accounting for 10-point-1 percent of total exports from the five countries to South Korea.
Honduras, in particular, has been one of the top 10 coffee exporters to South Korea for each of the last 5 years, shipping more than 20 million U.S. dollars of coffee to Korea each year.
Both large Korean firms and SMEs are also expected to benefit from this trade deal.
Korea's major export items such as automobiles and steel will be covered by the FTA, and items produced by SMEs, from cosmetics to auto parts, will also be subject to lower tariffs.
However, some items such as rice, pepper and garlic which require protection are either excluded from the FTA or fall under a long-term tariff elimination period of 10 to 19 years.
SEO Eunkyung, Arirang News.
It is expected to benefit not only Korean firms but also consumers, who could see lower coffee prices.
Our Seo Eunkyung has more.
According to the Ministry of Trade, Industry and Energy on Monday, South Korea's free trade agreement with five Central American countries will begin to take effect at the start of October.
The agreements with Honduras and Nicaragua have been fully ratified by both sides and will take effect from October 1st.
The trade agreements with Costa Rica, El Salvador and Panama will also come into effect as soon as those countries ratify the agreement and notify South Korea.
The trade deal will eliminate tariffs on both sides immediately or in stages for more than 95 percent of all traded items.
With this new trade deal, customers in Korea are expected to enjoy coffee at cheaper prices.
Coffee was one of the top three imported items from the five Central American countries last year, accounting for 10-point-1 percent of total exports from the five countries to South Korea.
Honduras, in particular, has been one of the top 10 coffee exporters to South Korea for each of the last 5 years, shipping more than 20 million U.S. dollars of coffee to Korea each year.
Both large Korean firms and SMEs are also expected to benefit from this trade deal.
Korea's major export items such as automobiles and steel will be covered by the FTA, and items produced by SMEs, from cosmetics to auto parts, will also be subject to lower tariffs.
However, some items such as rice, pepper and garlic which require protection are either excluded from the FTA or fall under a long-term tariff elimination period of 10 to 19 years.
SEO Eunkyung, Arirang News.