EU-South Korea trade pact marks trouble, Ford says

DEARBORN, Michigan, July 9 (Reuters) - A proposed trade pact between South Korea and the European Union is one-sided and could threaten automobile manufacturing in Western Europe, a top Ford Motor Co (F.N) executive said on Thursday.

Automakers now battling an economic crisis must also battle "ill-conceived" trade proposals, Ford Chief Financial Officer Lewis Booth said in an interview.

"Right in the middle of the worst economic crisis for 50 or 70 years, some parts of the European Parliament are advocating a free trade agreement with Korea that is very very one sided in favor of Korea," Booth told Reuters.

Booth's remarks followed a statement on Wednesday by the European automobile industry's trade association, ACEA, that called on EU governments not to accept a trade deal with South Korea "before a balanced outcome is assured in order to safeguard competitiveness and employment levels in Europe."

The proposals allow South Korean manufacturers to import a higher percentage of parts from neighboring countries and claim the duties back when vehicles are shipped to European markets, effectively opening Europe to cheap imports, ACEA said.

The trade proposals also fail to address non-tariff barriers to improved access to South Korea markets such as securing existing international vehicle standards, it said.

The EU auto industry employs more than 2.3 million workers directly and supports 10 million other jobs indirectly.

"We think it is completely inappropriate," Booth said of the proposed deal. "It will encourage people to take manufacturing out of Western Europe and take it to places like Korea."

Ford derives a tremendous benefit from free trade everywhere as a global company if it truly is free, he said.