(VOVworld) - South Korea and six Central American countries approved a free trade agreement on Wednesday, which will eliminate tariffs on 95% of all exported goods.

The agreement will help consumers in Nicaragua, Costa Rica, El Salvador, Honduras, Guatemala, and Panama buy high quality products at reasonable prices, generate jobs and boost exports from Central America to South Korea, the 4^th largest economy in Asia. South Korea will phase out tariffs on Central America-produced coffee, sugar, and fruits. Tariffs on beef and pork will be phased out over 19 years. South Korea is the first Asian country to reach a free trade agreement with Central America on automobiles and steel, ahead of Japan and China. There are about 250 Korean businesses and 120,000 Korean citizens living and working in Central America.