Korean exports to EU rise 16.1 pct. thanks to lower tariffs

Despite the eurozone`s debt woes, Korea`s exports to the European Union surged 16.1 percent year-on-year in the second half of this year thanks to lower tariffs under the bilateral free trade pact.

With Korean exports to the U.S. also increasing by 11.3 percent in the past two months since the effectuation of a similar agreement, free trade deals are serving as an important tool in boosting Korea`s outbound shipments.

According to the Strategy and Finance Ministry on Monday, Korea`s exports of manufactured goods to the EU subject to lower tariffs expanded 16.1 percent year-on-year for six months since the trade deal`s effectuation in July last year. Over the same period, the EU`s overall imports of lower-tariff products rose just 6.7 percent.

A ministry official said, "Due to differences in trade data calculation methods between the two countries, we applied the EU`s method for accuracy and still witnessed a surge in Korean exports. According to Korea Customs Service data, Korea`s exports of the same products to the EU rose as much as 27.1 percent."

By item, Korea`s petroleum products, which benefited heavily from a cut of 3.5 to 4.7 percent in tariff, saw exports skyrocket 235.4 percent, while those of cars surged 71.8 percent. Exports of auto parts grew 15.3 percent, those of tires rose 9.1 percent and those of plastic resin went up 3.9 percent.

The EU`s overall imports of Korean products, however, shrank 7.4 percent in the second half of this year due to the fallout from the eurozone debt crisis.

constant25@donga.com