South Korea's parliamentary trade committee passed Thursday a two-way trade pact with the European Union, clearing a hurdle for the bill's ratification, local media reported.

Members of the committee on foreign and trade affairs approved the trade bill 17-2, with six abstentions, according to reports.

The ratification motion, submitted to the parliament in October, has met with opposition from minor parties here for concerns that it would harm the country's hog and dairy industries hit hard by the outbreaks of foot-and-mouth disease.

The European parliament, on the other hand, endorsed in February what it said was "the most ambitious trade agreement the EU has ever negotiated."

The pact is expected to eliminate about 98 percent of import duties and other trade barriers in manufactured goods, agricultural products and services over the next five years.

South Korea projects the bilateral pact will help its gross domestic product to grow 5.6 percent and create 250,000 new jobs, along with average annual trade surplus of 360 million dollars over the next 15 years.