Egypt and South Korea making plans to sign FTA but will the host nation be ready to face both pros and cons of the FTA agreement.
Egypt and South Korea are currently in talks over a free trade agreement (FTA). This agreement will help boost trade exchange and joint economic cooperation according to South Korean Ambassador to Egypt Yeocheol Yoon.
Speaking during the DNE attendance of the preparation for the online live stream of the final episode of ‘Assalam Alikum from Cairo’ show on sunday. Yoon said the future FTA will hopefully solve the current issue that faces Korean automotive companies. This is after activating the zero tariffs policy on the European cars which makes the competition unfair.
Meanwhile Egypt and Korea enjoy very strong relations especially after President Al-Sisi paid South Korea a historical visit in March 2016. However, the plan according to Yoon is that when South Korean President Moon Jae-in visit Egypt, the FTA will be signed by both leaders.
IMPORTANCE OF THE FTA?
Many South Korean companies currently operates in Egypt with more planning to invest according to Yoon. He said they have recognise Egypt as a huge country with huge passionate population. And as much, South Korean government pays great attention to training and building capacities of Egyptian youth.
South Korea are also cooperating with Egypt for a US$115m project for development of railways according to Yoon. This is because transportation is a very important area of cooperation between Egypt.
FREE TRADE DEAL CHALLENGES?
Free trade agreement on a personal level is a great deal but most times developing nations especially in Africa don’t get the full benefits. While trade agreements do make it easier for countries to buy products from each other, they can also cause a host of serious problems.
Such problems like labor practices, environmental destruction, loss of domestic industry, Destruction of Native Cultures, Degradation of Natural Resources and Reduced Tax Revenue. The bottomline is that host nation should be ready to face both pro and cons of the FTA agreement.