South Korea yesterday welcomed ratification of a sweeping free trade agreement with the European Union, saying Korean firms will be able to tap deeper into the world’s largest market.

Opposition parties had called for a delay in ratifying the deal, insisting on extra safeguards to protect local industries and farmers. But the ruling Grand National Party pushed the Bill through Parliament late Wednesday.

The deal, due to take effect on July 1, “will allow us to take an advantageous position in the EU, the world’s largest market and a major trading partner of ours,” a foreign ministry statement said.

“It will also contribute to solidifying the strategic partnership between South Korea and the EU.”

EU Trade Commissioner Karel De Gucht also welcomed the ratification, saying the pact would “create growth, jobs, consumer benefits and boost exports, competitiveness and investment in both the Korean and the EU economies”.

South Korean government officials say the deal will create new opportunities and markets for South Korean goods, services and workers, while giving consumers more competitive pricing and better-quality goods and services.

Analysts say it will also help South Korea attract more foreign investment and make business practices and management more transparent.

The state-run Korea Institute for International Economic Policy has said the pact over the long term would boost South Korea’s annual exports by $11 billion, raise gross domestic product by 5.6 per cent and create up to 253,000 jobs.

The EU has cited an estimate that it would more than double trade over the next 20 years.

The trade accord is the most ambitious the EU has negotiated, and its first with an Asian nation. The two sides will axe 98 per cent of customs duties within five years, apart from those on a few Korean farm products.

Two-way trade in 2009 was worth €53.5 billion with Korean exports –mainly cars, ships, electronics and semiconductors – accounting for €32 billion.