EU and South Korea in trade deal

Source: BBC

The European Union and South Korea have signed a trade deal that could be worth up to 19bn euros ($28bn; £17bn) to European exporters. The deal would remove most of the trade tariffs between the two partners.

It would "create opportunities for European companies in services, manufacturing and agriculture," said EU Trade Commissioner Catherine Ashton.

The EU said it was "the most important free trade agreement ever negotiated {with} a third country".

Ms Ashton said: "This is the first 21st century free trade agreement for the EU, creating deep economic ties with another developed economy." She added that the deal would help fight the economic downturn and create new jobs.

Read more: http://news.bbc.co.uk/2/hi/business/8308433.stm

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European companies compete so well internationally largely because they don't have to shoulder health insurance costs like American companies do. Their employees have better labor protections (and corporate profits and managerial salaries are more progressively taxed) so the companies focus more on long term goals of customer satisfaction and employee loyalty rather than meeting this quarter's profit projection on Wall Street and paying big bonuses based on that.

It is amazing whom you can compete with when your society provides an effective safety net and your vision goes beyond the end of the current quarter.

It is gratifying to see that the EU sees South Korea as "another developed economy". They have come a long way since the whole country was flattened in the Korean War. Good for them.

"health insurance" costs to employers are roughly 12% of gross salary as direct NHS payments paid monthly in arrears - hardly insignificant so that's a bit of red herring. The significant part is all transactions will be in Euros.

to NHS.

12.8% on everything above c. £6000. Employees also pay 11% between £6000 and c. £37000 at present.

Our NHS , since 1948 , has been socialised : not free other than for those unable to pay, unemployed , retired , children etc.

and in theory, covers both state retirement pensions and health care (for everyone). But the budget for both the NHS and state pensions isn't, in practice, tied to these employer and employee payments, known as 'National Insurance'.