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.

The EFTA States were the first European States to conclude a free trade agreement with Korea, in 2005. The Agreement has been successful for both the EFTA States and Korea, with trade almost tripling since its entry into force in 2006. The Agreement therefore has a special place in our expanding network of free trade agreements in the world and in the Asian region in particular.

The Agreement has after 12 years 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. 

Merchandise trade between our countries reached USD 8 billion last year. Since the Agreement entered into force Korea has not only exported over 200,000 cars, but also 9 million cell phones to the EFTA States – and in return Switzerland has exported 9 million watches to Korea. It is a wonderful 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 are three times higher.

The trade ties between EFTA and Korea also extend beyond consumer products. I would particularly like to highlight the shipbuilding industry, where Norway and Switzerland are both important suppliers of parts that facilitate exports and important customers. 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. Just to develop the giant Sverdup oil field for instance, Equinor placed an order for platforms for USD 900 million from Korea.

Even though the Agreement has been successful for both EFTA and Korea, we need to continue our work to ensure that it remains an up-to-date and dynamic tool that meets the needs of our respective economic operators. This is particularly important against the current backdrop of anti-globalisation rhetoric and rising protectionism.

Looking back at 2018, I am happy to report on a high level of engagement with Korea at various levels. Besides visits to Korea by EFTA States at the highest political level, the Joint EFTA-Korea Committee met in June to review and discuss possible further developments of the Agreement. Moreover, important progress was made in the discussions in the Working Group on Technical Barriers to Trade, which will further facilitate trade in goods between EFTA and Korea.  

I am confident that the EFTA-Korea relationship will continue to flourish in the coming years. In 2019, I look forward to a visit by the EFTA Parliamentary Committee to Korea, which will add an important parliamentary dimension to EFTA-Korea relations.

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 visit of an ECCK delegation to the EFTA Secretariat in Geneva in November, in which the ECCK presented us with the well-received 4 edition of its White Paper, compiling key industrial issues and recommendations from the European business community in Korea. The cooperation with the ECCK is very much appreciated and I look forward to continuing working together in 2019 to promote the interests of EFTA business in Korea. I wish the ECCK yet another successful and rewarding year.