Israel and South Korea are considering a free trade agreement resembling the Israel-US agreement, Minister of Industry Trade and Labor Ehud Olmert said yesterday after meeting South Korean Minister of Commerce, Industry and Energy Lee Hee-beom in Seoul. Olmert said Israel had free trade agreements with North American and European countries, but none with Asian countries, which account for 20% of Israeli exports.
Lee asked Olmert for information about the positive effects of the Israel-US free trade agreement, and they agreed that teams would meet to discuss the matter as soon as possible, before a bilateral economic conference scheduled to take place in Israel in early 2006.
Olmert briefed Lee on a Ministry of Industry foreign trade administration study that predicted that Israel would have a network of free trade agreements with China, India, Indonesia, Japan, Malaysia, South Korea, and other countries with a total population of 3.5 billion. Olmert said Israel needed a foothold in the emerging Asian economic bloc.
Olmert said South Korea would be the first Asian country with which Israel would open talks on a free trade agreement. He added that Israel was also negotiating with India an improved economic agreement.
Olmert also discussed promoting reciprocal procurements between Israeli and Korean companies, a standards agreement for communications and medical equipment, agreements in agriculture and tourism , and expanding high-tech, communications, and distance learning R&D.
Published by Globes [online], Israel business news - www.globes.co.il - on January 18, 2005