Beyond fish, cheese and automobiles: 20 years of partnership between Korea and EFTA

Nadine Olivieri Lozano

The author is the ambassador of Switzerland to Korea.

Anne Kari Hansen Ovind

The author is the ambassador of Norway to Korea.

When taking up a new posting, one of the pleasures for an ambassador is discovering which products from home are available in the host country. In this regard, Seoul does not disappoint. From Norwegian salmon and brown cheese to Swiss watches, milk chocolate and even toothpaste, Koreans enjoy the benefits of open trade, and Korean cars, cosmetics and consumer electronics are household names in our home markets. Major trade in pharmaceuticals between Korea and the countries of the European Free Trade Association (EFTA) — Iceland, Liechtenstein, Norway and Switzerland — contributes to health and well-being on both sides. Industrial cooperation, including in shipbuilding and advanced manufacturing, has strengthened businesses and created new opportunities for innovation.

These successes are not a coincidence.

Following barely a year of negotiation, the Korea-EFTA FTA entered into force in September 2006. It was Korea’s first FTA with European countries and its first agreement with a regional trade bloc. It covered all major areas of economic cooperation, including trade in goods and services, government procurement, competition and intellectual property; eliminated tariffs on more than 99 percent of merchandise trade; and established liberal, business-friendly rules of origin.

At the time, the agreement demonstrated a strategic vision that open markets, clear rules and closer economic cooperation would strengthen prosperity and deepen ties between our countries.

The results speak for themselves.

Since 2005, trade between Korea and EFTA states has roughly tripled, reaching more than 8.5 billion euros ($9.85 billion) in 2025. Today, Korea is EFTA’s fifth-largest export partner and seventh-largest import partner for goods.

But this partnership extends far beyond statistics.

Over the last two decades, the agreement has made trade and investment smoother, more predictable and more competitive while building long-term commercial relationships. In an increasingly uncertain world, it has provided stability and legal certainty for companies, workers and consumers alike.

This reflects an important fact: Our economies are highly complementary. Korea and the EFTA bring different strengths to the global economy. Even in sectors in which we are all internationally competitive, such as pharmaceuticals, advanced manufacturing and high-value consumer products, our companies often complement one another more than they compete.

The world, however, has changed profoundly since 2006.

Then, many assumed that trade liberalization would continue to expand naturally. Today, the international landscape looks more challenging. Rising protectionism, geopolitical tensions and economic fragmentation are testing the foundations of global trade.

At the same time, technological change is transforming how businesses operate. Digital services, data flows, AI and green technologies are increasingly central to economic growth. The agreement was negotiated before smartphones, cloud computing and AI became part of everyday business.

The case for modernization is straightforward: What was a highly advanced agreement in 2006 cannot fully reflect the reality of 2026.

Modernization is not primarily about lowering additional tariffs. It is about making the agreement work better for businesses by simplifying customs procedures, streamlining rules-of-origin requirements and reducing administrative burdens. Such improvements would make the agreement easier to use and help more companies, particularly small- and medium-sized enterprises, benefit from its provisions.

It would also reflect the evolution of Korea’s trade policy. Since 2006, Korea has concluded numerous FTAs and has become a leader in new disciplines, including in the digital sphere. Modernizing the Korea-EFTA agreement would help maintain a level playing field and open new opportunities for cooperation between like-minded partners.

Most importantly, it would send a clear message. At a time when open and rules-based trade is increasingly challenged, Korea and the EFTA can reaffirm their shared commitment to an international economic system that promotes prosperity, innovation and resilience.

As we mark the twentieth anniversary, we should also look ahead. By modernizing the Korea-EFTA FTA, we can ensure that our partnership remains dynamic, forward-looking and ready for a new era. In doing so, we can build on two decades of success and create the conditions for our economies, businesses and citizens to grow, adapt and prosper together in the years to come.