17 Oct 2009

EU, South Korea sign trade deal

6:53 am on 17 October 2009

The European Union and South Korea have signed a trade deal potentially worth tens of billions of dollars to both sides.

The deal will remove most of the trade tariffs between the two partners, the BBC reports.

The EU says it's the most important free trade deal ever negotiated between the 27 countries and their second biggest trade partner after China.

It's estimated the deal with be worth $US28 billion in new trade to European exporters and $US18 billion to South Korea's exporters.

EU Trade Commissioner Catherine Ashton said the deal was vital as both sides battle the effects of recession.