The European Free Trade Association (EFTA) and Korea enjoy a strong and long-standing partnership, underpinned by a deep and mutually beneficial trade and investment relationship.
EFTA is an intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland, set up for the promotion of free trade and economic cooperation between its members, within Europe and globally. The EFTA States jointly negotiate free trade agreements with partners outside the European Union. As a result, economic operators in the EFTA States enjoy access to one of the world’s largest networks of preferential trade relations, which continues to expand thanks to an ambitious agenda of negotiations. In return, economic operators from free trade partners benefit from enhanced and preferential framework conditions for trade and investment with the EFTA States.
The EFTA States were the first European States to conclude a free trade agreement with Korea, in 2005. This has proven successful for both the EFTA States and Korea, with trade almost tripling since the Agreement entered into force in 2006. The Agreement therefore has a special place in our expanding network of free trade agreements in the world and in particular in the Asian region.
The Agreement has in the 13 years since its entry into force largely achieved the main objectives set out for it: the harmonious development of economic relations; the expansion of trade; and enhanced cooperation between EFTA and Korea. Korea is a particularly important partner for EFTA. Since the Agreement entered into force Korea has exported over 200,000 cars and over 9 million cell phones to the EFTA States. In return, EFTA States altogether have exported over US 14 billion worth of machinery and over 9 million watches to Korea. Therefore, the Agreement represents a great example of the mutual benefits of trade. The expansion of trade is broad-based. The dollar value of EFTA exports of both seafood and watches are now both 10 times higher than in 2005 and pharmaceutical exports have increased threefold in that time.
In addition to consumer products, I would like to highlight the shipbuilding industry, where Norway and Switzerland are both important suppliers of parts that contribute to important Korean exports worldwide. In addition, shipping companies based in Norway and Switzerland have placed large orders in Korea and the Norwegian oil industry has in recent years also become an important customer.
While the Agreement has proven a success for both EFTA and Korea, it is important that efforts to ensure that it remains an up-to-date and dynamic tool which meets the needs of our respective economic operators be continued, not least with the current backdrop of anti-globalisation rhetoric and rising protectionism.
2019 saw the visit of the EFTA Parliamentary Committee in April, which resulted in important discussions with Korea´s Deputy Minister for Economic Affairs, the Deputy Minister for Trade Negotiations and with members of the National Assembly as well as various representative from associations and businesses, both from EFTA and Korea.
In 2020, I look forward to a meeting of the EFTA-Korea Joint Committee, during which it is foreseen that the Agreement is reviewed and further developments discussed. I am confident that the EFTA-Korea relationship will continue to flourish in the coming years.
I would like to thank the ECCK for its valuable work with the European business community in Korea, and its active role in fostering closer economic relations between Europe and Korea. The significance of knowing the regulatory framework, market trends and emerging opportunities in Korea should not be underestimated. The ECCK stands in the forefront on these issues. I would also like to express my gratitude for the ECCK´s continued interest in EFTA and for the visits of an ECCK delegation to the EFTA Secretariat in Geneva in June and November. The fifth edition of ECCK’s White Paper, compiling key industrial issues and recommendations from the European business community in Korea was well received and is a very valuable contribution to our further endeavours. The cooperation with the ECCK is very much appreciated and I look forward to our continued collaboration in 2020 to promote the interests of EFTA business in Korea. I send my best wishes to the ECCK for another successful and rewarding year.
Henri Gétaz
Secretary-General
European Free Trade Association
Message from Secretary-General of the European Free Trade Association
