BRUSSELS (AP) — The European Union agreed yesterday to a free trade pact with South Korea that will slash billions of dollars in industrial and agricultural duties, despite some countries' worries that the auto industry could be hurt by a flood of cheaper cars.

The deal — the first such pact between the EU and an Asian trading partner — will be signed at an EU-South Korea summit on October 6 and come into force on July 1, 2011, said Belgian Foreign Minister Steven Vanackere, whose country holds the union's rotating presidency.

However, it first has to be approved by the EU and South Korean parliaments and European carmakers are still hoping lawmakers will ensure safeguards for their industry.

"We believe very strongly that there is still room for improvement," said Ivan Hodac, secretary general of the European Car Manufacturers Association.