[Opinion] EU’s Power

After the first negotiation on the free trade agreement (FTA) between Korea and the European Union (EU), French Ambassador to Seoul Philippe Thiebaud grumbled to Korean reporters, saying “Why were there only six demonstrators near the place where the negotiation took place? Don’t you think it is weird?” He nodded his head slantwise, saying “Hundreds of demonstrators took to the streets when Korea negotiated over an FTA with the United States. But, why do Korean people have no interest in the FTA between Korea and the EU (whether for or against it)?” Korea and the EU have held their fifth FTA negotiation. I wonder whether the French ambassador found the reason.

Korea should have paid more attention to the EU even just for economic benefits. The EU, consisting of 27 European countries, is the world’s largest single market with a population of 500 million and the GDP worth 14 trillion dollars. It is bigger than the U.S. which has a population of 310 million and the GDP amounting to 13 trillion dollars. EU’s average tariff rate is 4.2%, compared to 3.7% of the United States. Therefore, if an FTA is concluded with the EU, Korean exporters will have a greater advantage. Certainly, Koreans have had no idea of the power of the EU while paying all of their attention to the Korea-U.S. FTA.

In 2007, Korea had a record trade surplus of 18.45 billion dollars in its trade with the EU, larger than 18.09 billion dollars of trade surplus in its trade with China. The trade surplus gap would further widen since Korea’s trade surplus with the EU has gradually increased while its trade surplus with China is decreasing by about 2 billion dollars a year. Against this backdrop, Koreans are making a big mistake if they consider the EU as its fourth largest export market, following the U.S., China, and Japan.

Political alliance within the EU has also strengthened. At the end of this year, the EU will elect its first president who will represent Europe from next year. French President Nicolas Sarkozy’s turn at the EU’s rotating presidency in the second half of this year is also drawing much attention. He claims that G8 (G7 and Russia) should eventually become the G13 adding China, India, Brazil, Mexico and South Africa. If Sarkozy’s blueprint of G13 becomes a reality, Korea cannot be a member of the G13. That’s why we should not make light of the EU. It is not the right time for Koreans to pay all of the attention to the U.S., whether they are for or against it.

Editorial Writer Bang Hyeong-nam hnbhang@donga.com