Prohibition of duty drawback would nullify the benefits of the FTA for Korean products in the EU market.

ECONOMIST: Letters: On speculation, free trade, Indian infrastructure, wheat rust, cyber-security, mental health, car insurance, General McChrystal | The

The duty drawback system is allowed under the World Trade Organisation, and countries like America, Japan and China maintain it.

ECONOMIST: Letters: On speculation, free trade, Indian infrastructure, wheat rust, cyber-security, mental health, car insurance, General McChrystal | The

Opposition to the treaty has come especially from European carmakers who have argued the agreement benefits South Korea by allowing Korean manufacturers to reclaim duties paid on cheap imports from neighbouring countries - so-called duty drawback.

BBC: EU-South Korea trade deal backed by European Parliament