The European Union and South Korea are this week expected to clash over tariff reductions on cars and the liberalisation of agricultural imports when they meet for their fourth round of bilateral trade talks amid doubts about whether a deal can be concluded by the end of the year as hoped.

A deal would be significant for both sides. Bilateral trade is already worth €60bn annually – the EU is Korea’s second largest trading partner after China – and the deal could augment that by as much as €40bn a year.