S. Korea ASEAN FTA to take effect June 1

South Korea said Monday that a free trade agreement covering goods with nine of the ten members of Association of Southeast Asian Nations will take effect on June 1.
Thailand, the world's top rice exporter, refused to join the agreement to protest Seoul's insistence on excluding rice.

South Korea's National Assembly ratified the agreement, reached in August, last week, the Ministry of Foreign Affairs and Trade said in a statement.

Under the agreement, 97 percent of South Korean products sold in ASEAN countries will be exempt from tariffs or will face tariffs lower than 5 percent by 2010.

The South Korean government estimates its trade surplus with the countries will likely increase by US$1.5 billion (euro1.1 billion) as a result. The trade surplus with ASEAN last year was US$2.32 billion (euro1.7 billion).

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

South Korea will hold separate talks with Thailand for a free trade agreement in goods, the ministry said.

Seoul last week concluded a free trade agreement with the United States, successfully keeping its rice market out of the deal.