European Parliament agrees on safeguard clause over EU-South Korea trade accord

[News_Editor]

European Parliament agrees on safeguard clause over EU-South Korea trade accord

2011-01-26 23:00:05 GMT+7 (ICT)

BRUSSELS (BNO NEWS) -- Members of the European Parliament (MEPs) on Wednesday agreed on the safeguard clause of the European Union-South Korea free trade accord.

The trade agreement moved one step closer after the Parliament's International Trade Committee backed the final compromise on the safeguard measures reached with the Council last December.

The safeguard clause is aimed at protecting the EU industries from a probable surge in South Korea imports. The measures would also enable the EU to reduce or increase custom duties to prevent an excessive increase in imports from South Korea.

MEPs approved the Parliament's amendments to the safeguard measures in September 2010 but the final vote was postponed to allow more time for negotiations with Council on outstanding issues.

The negotiations focused on a simple, effective safeguard clause to tackle any surge in South Korean imports and also to make the EU-South Korean free trade agreement more attractive to European industry.

MEPs proposed a series of elements of protection to protect the EU industry, in particular the automotive industry. In addition, MEPs have made a number of changes to the legislation.

The changes include the right to ask the Commission to launch an investigation to determine if any EU industry is being affected by South Korean imports, the introduction of surveillance measures, and compensation under the European Globalization Adjustment Fund.

The European Commission also assured MEPs that if any change is registered in the recently reached U.S.-South Korea free trade deal, it will automatically apply to the EU as well.

The Parliament will vote on the safeguard clauses during its plenary session in February in Strasbourg, France. Both the EU-South Korea free trade agreement and the safeguard regulation are due to come into force in July 2011.

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