Israel, South Korea to negotiate free trade agreement

Minister of Industry Trade and Labor Mr. Ehud Olmert said last week that Israel and South Korea are considering to negotiate a bilateral free trade agreement.

Olmert emphasized in a press conference that Israel had free trade agreements with North American countries, the EU and EFTA, but none with Asian countries, which account for over 20% of Israeli exports. Mr. Ehud Olmert declared the intention after having met South Korean Minister of Commerce, Industry and Energy Mr. Lee Hee-beom in Seoul.

Olmert said that South Korea would be the first Asian country with which Israel would open discussions on a free trade agreement. According to Olmert the South Korean Minister asked for general information about the positive effects of the Israel-US free trade agreement, and they agreed that Israeli and South Korean teams would meet to discuss the matter as early as possible.

Olmert added that he gave the Minister a briefing on a study prepared by the Ministry of Industry foreign trade administration that predicted that Israel would have a network of free trade agreements with Japan, Indonesia, China, India, Malaysia, South Korea, and other countries with a total population of 3.5 billion.

Trade between Israel and South Korea in 2004 totaled us$1.1 billion. Israel's export totaled us$380 millions whereas import from South Korea totaled us$750 millions.