EU and South Korea in trade deal

he 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".

'Substantial commitments'

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.

The deal would see the removal of 1.6bn euros of duties for exporters to Korea.

The EU said telecommunications, environmental, legal, financial and shipping companies would see some of the greatest benefits, with Korea making "substantial commitments" to liberalise these sectors.

The agreement is expected to come into force in the second half of next year, once it has been ratified by the European Parliament.

Trade between the EU and Korea was worth about 65bn euros in 2008.