KORUS FTA likely to get boost at next weeks' Washington summit

By Park Sang-soo
SEOUL, June 11 (Yonhap) -- Despite some positive noises on the pending free trade
accord between South Korea and the United States ahead of their summit slated for
next week, experts see little chance of the deal gaining imminent ratification.

But Tuesday's forthcoming summit in Washington, the second of its kind since the
U.S. President Barack Obama was inaugurated earlier in the year, is likely to
help the free trade agreement (FTA) gain momentum in a battle to win legislative
approval in both states, they said.
The free trade accord, known as the KORUS FTA, was signed in 2007, but its
ratification in both countries has been stymied by disagreements on auto and beef
trade.
South Korea's National Assembly has been delaying deliberations on the KORUS FTA,
citing growing pessimism about the deal in the U.S. Congress. But Seoul's
parliamentary committee on foreign affairs and trade recently approved the pact,
signaling possible ratification during this month's plenary session.
"In the past couple of months, it is true that the mood unfolding in the U.S. has
improved (for the ratification of the free trade deal)," said Chung In-kyo, a
professor of Inha University.
"The trade issues between the two countries are currently overshadowed by
political events???, but both countries are feeling the need to solidify their
relations through economic ties," he said.
Along with other key agendas such as North Korea's nuclear ambition, the
ratification of the FTA will be a key issue during a summit between South Korean
President Lee Myung-bak and Obama, according to Seoul's presidential office.
Obama has opposed ratification of what he called a "badly flawed" free trade
agreement with South Korea citing imbalanced auto trade. And the
Democrat-controlled Congress has expressed concerns that its ratification will
undermine support from U.S. trade unions, their political base, due to possible
job cuts in the worst recession in decades.
In South Korea, there have been concerns that the free trade deal would severely
hurt some sectors such as the agriculture industry.
But at their first summit in London in April on the sidelines of the G-20
economic summit, Lee and Obama agreed that the free trade accord could bring
benefits to both countries and committed to working together to chart a way
forward. They also stressed the importance of avoiding protectionism and economic
nationalism.
"At next week's summit, the leaders may reaffirm that the free trade deal is
beneficiary and important to both countries and renew their commitment toward the
ratification of the accord," said Choe Nak-kyun, a senior researcher at the
state-run Korea Institute for International Economic Policy (KIEP).
Choe said that Lee will have several chances to meet Obama in the coming months
on the sidelines of the G20 economic summit in September and other international
forums to help give momentum to ratification of the trade pact in both countries.

Experts, however, say both countries have to work diligently to resolve the auto
and other issues impeding an early ratification of the trade deal.
U.S. officials have often stressed a need to address what they call an imbalance
in auto sales and restricted shipments of U.S. beef before bringing the deal to
the Congress for a vote.
U.S. Trade Representative Ron Kirk recently said that he "will promptly, but
effectively, address the issues surrounding the KORUS FTA, including concerns
that have been expressed regarding automotive trade," before bringing the Korea
FTA to Congress for ratification.
The auto provisions are the thorniest issue in the bilateral trade deal, the
biggest for the U.S. since the North American Free Trade Agreement in 1993. Also,
the U.S. side wants to lift restrictions on shipments of its beef to the South
Korean market.
"I think the ratification of the deal may depend on how fast the economic
situation in the U.S. improves," Choe said. "The bankruptcy of GM Motors Corp.
may help the U.S. government and the Congress push for the ratification of the
trade deal."
In the meantime, there has been speculation that the U.S. may demand
renegotiations of the accord, and even some U.S. officials and experts have
proposed that the sides come up with a "creative" way to circumvent a
renegotiation, which Seoul strongly opposes.
South Korean Trade Minister Kim Jong-hoon has said his government will not revise
the text of the deal itself, though some U.S. officials are reportedly hoping to
address the concerns via side agreements.
"Both sides should work to have the accord approved without changing the text,
because it could undermine the trade pact itself," said Bae Sang-keun, senior
researcher at the Federation of Korean Industries, the country's largest business
lobby.
sam@yna.co.kr
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