The European Union and South Korea signed a free-trade deal Wednesday that could double trade between them and trigger more calls among Asian states for such pacts with the 27-nation bloc.

The accord, Europe’s first with an Asian nation, is set to take effect July 1 once ratified by the European Parliament.

“This agreement is by far the most important trade deal ever concluded by the European Union with one country, and the first free trade agreement with an Asian country,” European Commission President Jose Manuel Barroso told reporters.

South Korean President Lee Myung-bak said the deal would enable South Korea’s economy to grow at more than 5 percent per year, create thousands of jobs and set a model for EU-Asia relations.

Gaining approval by the European Parliament is a top priority, EU President Herman Van Rompuy said.

“We will do everything we can to have an approval of the parliament as soon as possible,” he said.

European countries that are home to car producers — led by Italy — have reservations about a deal, and these may resurface before ratification.

Once launched, the deal will eliminate 1.6 billion euros ($2.2 billion) of duties a year for EU exporters to South Korea and tackle non-tariff barriers, including regulations and standards in sectors such as automotive, drugs and consumer electronics.

The EU runs a deficit with South Korea in goods trade, though trends suggest the Korean market offers significant growth potential for European firms.

A deal must still be approved by the European Union and Korean parliaments, where concerns still run high about the impact of the agreement on carmakers on both sides.

The European Parliament is also still drafting a separate regulation that would allow the EU to snap shut its borders to cheap South Korean cars in the event of a surge of imports.

It is not yet clear who could demand the imposition of such “safeguard measures” or in what circumstances.