Reply #102: EU free trade pact could cut inflation

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http://joongangdaily.joins.com/article/view.asp?aid=2935977

A free trade deal with the European Union is expected to help ease inflationary pressure in Korea by lowering import prices of agricultural and fishery products and other food materials, the Finance Ministry said yesterday.

Korea’s parliament last week approved the free trade agreement signed in October last year and slated to take effect in July. In February, the European Parliament ratified the accord, calling for eliminating or phasing out tariffs on 96 percent of EU goods and 99 percent of Korean goods within three years after its implementation.

“The Korea-EU FTA is expected to result in cutting prices through tariff reductions or counter some of the factors that create price hikes by stimulating market competition,” the ministry said in a report.