South Korea and the European Union have signed a bilateral free trade agreement for stronger economic ties as strategic partners. In a ceremony held in Brussels on the sidelines of the Asia-Europe Meeting Summit, South Korean President Lee Myung-bak and EU President Herman Van Rompuy and European Commission President Jose Manuel Barroso signed the pact which was initialled a year ago in Brussels. The two sides will eliminate or phase out tariffs on 99.6 percent of industrial and agricultural products from the counterpart country.