South Korea plans to start free trade agreement (FTA) talks with the European Union (EU) as early as next month with the goal of striking an accord by 2008.

"Should the EU members reach an internal consensus by the end of this month, Korea and the EU could hold the first round of FTA talks in Seoul in early May,'' said Kim Han-soo, a director general of the Ministry of Foreign Affairs and Trade (MOFAT).

The EU is the second largest market for Korean exports following China. Last year Korea's exports to the European economic bloc reached $49.2 billion, exceeding $43.2 billion to the United States.

Days after Korea concluded its free trade talks with the U.S. on April. 2, Seoul officials began to stress the necessity of signing pacts with other economic superpowers such as China and the EU.

The EU also has been showing eagerness to establish an FTA with Korea since the latter started bilateral negotiations with the U.S. last June.

Korea and the U.S. held negotiations in 19 sectors but the number of negotiation sectors with the EU is expected to remain at about 10, government officials said.

About 50 Korean negotiators are expected to engage in the talks with the EU, compared with 150-180 in talks with the U.S.

Despite the smaller scale, the negotiation period could be longer than the KORUS FTA talks which were wrapped up in 10 months after the first round of talks in June 2006.

The two sides have the goal of concluding the talks by the end of 2008. But unlike the Korea-U.S. agreement in which the U.S. struggled to end the talks three months before George W. Bush's trade promotion authority (TPA) _ granted by the U.S. Congress _ expires on July 1, 2007, there is no time limit in the coming Korea-EU FTA talks.

They are likely to engage in heated debates in opening such sectors as the automobiles, agriculture and pharmaceuticals markets.

European countries including Germany, France and the United Kingdom will focus on the Korean automobile and agricultural markets while Korea will set its sights on electronic products and motor vehicles.

Effects from the removal of tariff barriers will be relatively high given the average tariff imposed on Korean products by EU members reaches 4.2 percent compared with about 3 percent by the U.S.

In 2005, the EU's gross domestic product reached $13.5 trillion, compared with $12.5 trillion of the U.S. and $4.6 trillion of Japan.

"Following the FTA with the U.S., now we expect to strike a deal with the EU quickly,'' Minister of Finance and Economy Kwon O-kyu told reporters last Wednesday. He also said it is very important to sign a deal with China.

Last August, Lee Hee-beom, chairman of the Korea International Trade Association (KITA), said he wants Korea to push for an FTA with the EU if the European economic bloc wishes to negotiate one.

The EU is also moving to hold free trade talks with other countries including the Association of Southeast Asian Nations (ASEAN). But its FTA targets do not involve the U.S. or Japan.

Only two developed nations _ Canada and Australia _ have signed FTAs with the U.S.