Obama opposes Korea-U.S. FTA due to auto trade imbalance

By Hwang Doo-hyong

WASHINGTON, Oct. 15 (Yonhap) -- U.S. Democratic presidential nominee Barack Obama Wednesday opposed a free trade deal with South Korea, citing an imbalance in auto trade.

"When it comes to South Korea, we've got a trade agreement up right now -- they
are sending hundreds of thousands of South Korean cars into the United States --
that's all good, (but) we can only get 4,000 to 5,000 into South Korea," Obama
said in the third and last presidential debate broadcast live.
Many Democrats oppose the FTA, citing an imbalance in auto trade at a ratio of
700,000 to 5,000 sales per year against the U.S. They also want more steel
shipments to South Korea.
U.S. automakers have called for guaranteed market share, but Bush administration
officials say any trade deal will not guarantee market share.
"That is not free trade," he said. "We've got to have a president who is going to
be advocating on behalf of American businesses and American workers."
Obama said he believed in free trade, but added that he "also believe that for
far too long, certainly during the course of the Bush administration with the
support of Senator McCain, the attitude's been that any trade agreement is a good
trade agreement."
Obama recently categorized the Korea-U.S. FTA as "badly flawed."
The Democratic platform calls for Democrats to negotiate FTAs that include
enforceable labor and environmental standards.
"NAFTA doesn't have -- did not have enforceable labor agreements and
environmental agreements, and what I said was we should include those and make
them enforceable in the same way that we should enforce rules against China
manipulating its currency to make our exports more expensive and their exports to
us cheaper," the Illinois senator said.
Obama's remarks come amid hopes by South Korean and U.S. officials that
Congressional Democrats will approve the biggest free trade agreement for the
U.S. since 1993 despite Democrats' reluctance to support the deal in a sensitive
election year.
Seoul and Washington have expressed confidence that the bilateral FTA, signed in
June last year, will be ratified once it is put to a vote during a lame duck
session after the Nov. 4 elections.
Opponents fear the free trade deal will cost American workers jobs, while
proponents insist it will boost the U.S. economy and see two-way trade volume
grow US$20 billion annually.
South Korean officials have said that more than 60 Democratic congressmen will
vote for the Korea-U.S. FTA, giving a clear majority despite some reluctant
Republicans.
Lawmakers of South Korea's ruling Grand National Party, holding a majority of
seats, said they will ratify the FTA bill during the ongoing parliamentary
session.
Obama's rival, John McCain, for his part, said that he is "a free trader."
The Republican platform says "Trade agreements that have already been signed and
are pending before Congress should be debated and voted on immediately."
The Arizona senator did not talk about the Korea-U.S. FTA, but defended the
Colombia deal, which is also awaiting congressional approval along with FTAS with
South Korea and Panama.
He said the FTA with Colombia does not require American exporters to pay up to
US$1 billion in tariffs, noting the incumbent trade deal imposes such tariffs on
U.S. exporters while allowing Colombian goods t come to the U.S. duty free.
"So Senator Obama, who has never traveled south of our border, opposes the
Colombia free trade agreement ... that will help us create jobs in America,
because they will be a market for our goods and products without us having to pay
the billion dollars and more that we've already paid," McCain said.