The incoming Swedish presidency of the European Union wants to forge a consensus next month on whether to proceed with a free-trade agreement with South Korea.
Senior officials from member states will discuss the matter on 10 July at the Article 133 Committee, the main decision-making body on trade policy.
“It is crunch time,” a trade diplomat said, indicating that there was little hope now of any further improvements in the draft.
Duty provisions
Korea recently offered to tighten up its currently generous approach to its domestic manufacturers on import duty provisions – one of the most contentious elements of the discussions – and Germany has consequently eased its opposition to these so-called duty drawbacks. But it is unclear whether the deal as it now stands is acceptable to all member states.
EU trade diplomats fear that failure to complete the agreement with South Korea might prompt the government to lose interest at a time when the United States is re-engaging with Seoul on trade matters.
