Korea to pursue free trade deal with Egypt

Korea agreed with Egypt Tuesday to sign a free trade agreement and begin working-level negotiations.

In a bilateral economic ministers meeting, Korea also decided to soon sign a memorandum of understanding with Africa’s largest seafood producer on fisheries cooperation. The two countries will also set up a joint committee of high-ranking business people to help Egypt build infrastructure.

The Korean Strategy and Finance Ministry briefed Cabinet members in Seoul on the results of the bilateral meeting to strengthen economic cooperation in a meeting at the Prime Minister’s Office.

Strategy and Finance Minister Yoon Jeung-hyun chose Egypt as the first country he will visit this year. He also held talks with Egypt’s economy minster Tuesday, Yoon’s first with an African country.

Joo Hyung-hwan, in charge of overseas economy at the ministry, said, “Bilateral trade volume with Egypt, which is geopolitically important to us and economically influential in Africa, was a meager 3.1 billion dollars last year. Our direct foreign investment in the country was only 200 million dollars,” adding, “The economic meeting has paved the way for Korea’s entrance to Egypt.”

Under the agreement, the two countries will pursue a free trade agreement and begin joint studies with the private sector and working-level negotiations.

Korea exports cars and electronic goods to Egypt but the African country imposes high tariffs of up to 100 percent on large-size automobiles. The ministry says a free trade accord with Egypt will significantly expand Korean exports of the two products by lowering tariff barriers.