By Itzhak Rabihiya Israel and the Republic of (South) Korea, today (Wednesday, 21 August 2019), in the presence of South Korean Trade Minister Yoo Myung-hee and Economy and Industry Minister Eli Cohen declared the conclusion of the joint negotiations on a free trade agreement. PM Netanyahu and Minister Cohen Meet with Republic of Korea Trade Minister Yoo Myung-hee. The Economy and Industry Ministry Foreign Trade Administration concluded the negotiations on the free trade agreement with South Korea, the 11th largest economy in the world. It is anticipated that the agreement will provide a competitive advantage and ease activity for Israeli exporters in the South Korean market, thus strengthening Israeli exports and increasing economic growth. The annual benefit to the economy will facilitate a better jumping-off point for Israeli exports. 
The Economy and Industry Ministry Foreign Trade Administration – in cooperation with the ministries of Foreign Affairs, Finance, Agriculture, Communications and Justice, as well as the Population and Migration Authority, the Tax Authority and the Competition Authority – led the negotiations over the past three years. The agreement is of great importance to relations between the countries and will advance bilateral relations as well as encourage trade in new areas In 2018, trade between Israel and South Korea amounted to approximately $2.5 billion, an almost 15% increase over 2017. It is anticipated that the free trade agreement will further increase bilateral trade. Upon the agreement's taking effect, most Israeli exports to South Korea will be exempt from customs duties, including machinery and electrical equipment, mechanical devices, fertilizer, medical equipment, cosmetics, plastics, metals, fruit juices and wine. From the other side, customs duties will be lowered on South Korean goods imported into Israel such as automobiles and automobile parts, refrigerators, medical equipment, electronic components, toys and games, plastics and chemicals. South Korea is the leading global producer of memory components and the second largest producer of semi-conductors. It is also the world's largest shipbuilder and holds more than half of the global market. In the automotive sector, thanks mainly to the Hyundai-Kia group and its secondary suppliers, is one of the ten largest producers in the world. South Korea currently has 15 free trade agreements with various countries and trading blocs, including the US, the EU, India and China. The free trade agreement between Israel and South Korea will assist in equalizing Israel's trade terms with those of the foregoing countries. Upon completion of the mutual ratification process, Israeli companies will benefit from equal trade terms and competition in the South Korean market. In 2018, Israeli exports were at a record high and passed the $110 billion threshold. Trade agreements that have been signed recently, including with South Korea, will facilitate the continuation of this trend.  Prime Benjamin Netanyahu and Economy and Industry Minister Eli Cohen, met today (Wednesday, 21 August 2019), at the Prime Minister's Office in Jerusalem, with Republic of Korea Trade Minister Yoo Myung-hee. Prime Minister Netanyahu said at the start of the meeting: We've had free trade agreements with other parts of the world with the United States, with Europe and elsewhere but this is the first free trade agreement we have with an Asian economy, and what an economy, a global leader, a vibrant, advanced economy. Israel is a vibrant, advanced economy and I think our partnership will do tremendous good for both our economies. I'm sure it will multiply our trade which already stands at $2.5 billion. It will grow a lot. I think that this will also offer for Israeli consumers decreased prices, removal of customs, for example from Korean cars. Technological exchanges will give us great advantage for the future. The people of Israel are delighted with this increased cooperation between our two countries. Welcome." Republic of Korea Trade Minister Yoo Myung-hee said:"As you mentioned this is a very significant and historic agreement. Both countries, South Korea and Israel, we have a lot of similarities and also we have complimentary economic structure. Based on this FTA I'm sure that it will further promote our trade and investment as well as further promote our technology cooperation." Attached photo credit: Kobi Gideon (GPO) |
