South Korean and EU business representatives in the country are wary that interest groups could put in jeopardy the ratification of the EU-Korea free trade agreement (FTA) that was concluded last October. On 24 November, South Korean Trade Minister Kim Jong-hoon warned of possible resistance from certain economic sectors that could lead to delaying the entry into force of the ambitious trade liberalisation deal. “Given the comprehensiveness and level of ambition of this agreement, it might be difficult to avoid opposing voices from both sides, especially from sectors vulnerable to the fierce competition which both economies will face as a result of the agreement, the minister told the EU Chamber of Commerce in Korea (EUCCK), in Seoul.

He urged the EU and the business community to remain mobilised in order to ensure a smooth ratification process. “I was very pleased to note that all EU member countries supported concluding the negotiations with Korea. However, I believe we should continue to work together to maintain the support of domestic constituencies both in Korea and the EU until the final entry into force of the agreement,” he said. Although the Union’s member states have expressed their support to the agreement, the consensus remains fragile according to experts, who expect a heated debate at the European Parliament when the issue will be discussed next year.

European car makers and South Korean farmers have expressed their opposition to the controversial deal and are trying to slow down the ratification process, according to an EU source. The ACEA, the European Automobile Manufacturers’ Association, has already started to lobby MEPs, who will have the right to veto the agreement under the Lisbon Treaty rules. The EUCCK told Europoliticsit intends to reach out to MEPs in order to outline the overall benefits of the deal and counter the car makers’ criticisms.

Following the initialling of the agreement, on 15 October in Brussels, the EU and South Korea are moving ahead and hope to sign it during the first quarter of 2010 in order to allow its entry into force during the second half of the same year. The text, which has been negotiated in English, is currently being translated into the 23 languages of the EU and will then have to be approved formally by the Council. The ratification process will require the approval of the European Parliament and of all the national parliaments within the EU as well as of the National Assembly in South Korea. The whole process is expected to take more than a year but the FTA could enter into force before all the national parliaments of the EU have approved it.

However, the green light from the European Parliament is seen as critical. Minister Kim Jong-hoon remains confident that the EU-Korea FTA will not face the same fate as the Korea-US agreement, which is still blocked by the US Congress, two years after its conclusion. “I do not expect the same problem because in the European system, the Commission has the largest competence regarding trade policy, he told Europolitics.