February 6, 2009

European automakers are calling for the EU to put the brakes on a free trade agreement (FTA) with South Korea, saying it won’t let them increase exports during a sales slump at home, reports the International Herald Tribune.

Specifically, the automakers said the deal now being negotiated would not eliminate barriers that hold back their exports to South Korea, yet it would allow South Korean rivals to ramp up exports as they gain full access to the EU market.

EU spokesman Peter Power responded that the proposed pact would give many European sectors—including automakers—substantial access to the South Korean market.

The European car industry says it is in crisis after sales slipped nearly 8 percent in the region last year.