ID :
29389
Mon, 11/10/2008 - 11:19
Auther :
Shortlink :
https://www.oananews.org//node/29389
The shortlink copeid
Seoul reiterates 'no' to possible U.S. FTA reneogitations
SEOUL, Nov. 10 (Yonhap) -- South Korea said Monday that a free trade agreement
(FTA) with the U.S. should go ahead as it is, ruling out the possibility of
renegotiations with the new administration of President-elect Barack Obama.
"If the U.S. calls for renegotiations, it would run counter to international
practices and undermine its credibility," Lee Hye-min, deputy minister for FTA,
said in a radio interview.
The two countries reached an agreement in April 2007 after a year of
negotiations. The pact is now subject to approval by the legislatures of both
countries, but ratification has been delayed by political debates on both sides.
There has been speculation that the U.S. could adopt protectionist trade policies
due to the current global financial crisis, and that an Obama administration will
likely request overall revisions to the FTA, especially with regards to the
automobile sector.
Obama, who recently described the free trade deal as "badly flawed" in terms of
fairness, has often stated that bilateral auto trade between South Korea and the
U.S. strongly favors the former.
South Korea shipped about 700,000 automobiles to the U.S. last year while
importing 5,000 from the U.S. Democrats also want more steel shipments to be
allowed into South Korea.
Under the free trade deal, the two sides agreed to slash and phase out tariffs on
autos, while South Korea promised to change its tax system for larger vehicles.
"As to agreements on the auto trade, there is nothing new that the U.S. gets
through possible renegotiations," Lee said adding that tax and non-tax issues
were all resolved.
Last week, South Korean Trade Minister Kim Jong-hoon also said last week the U.S.
auto industry's difficulties are not new ones and of its own making, adding that
U.S. automakers should strengthen their own competitiveness.
U.S. automakers have called for a guaranteed market share, but current
administration officials under outgoing President George W. Bush say the trade
deal will not make such guarantees.
Obama's foreign policy adviser also said earlier this month the new
administration will submit the trade bill early next year, but set several
preconditions, including the "strengthening of access by American automobile
exports to the Korean market."
U.S. lawmakers have been shying away from taking action during election season,
while ruling party lawmakers in South Korea have been pushing for quick approval
of the deal by the National Assembly.
South Korean President Lee Myung-bak and U.S. President George W. Bush agreed
during an April 19 summit to make joint efforts to gain approval of the FTA by
their respective legislatures by the end of the year.
The accord, if ratified, will knock down tariff and non-tariff barriers between
the world's largest and 11th-largest economies, which did US$78.4 billion in
two-way trade in 2007.
For the U.S., the deal with South Korea would be its biggest since the North
American Free Trade Agreement with Mexico and Canada in 1994.
sam@yna.co.kr
(END)
(FTA) with the U.S. should go ahead as it is, ruling out the possibility of
renegotiations with the new administration of President-elect Barack Obama.
"If the U.S. calls for renegotiations, it would run counter to international
practices and undermine its credibility," Lee Hye-min, deputy minister for FTA,
said in a radio interview.
The two countries reached an agreement in April 2007 after a year of
negotiations. The pact is now subject to approval by the legislatures of both
countries, but ratification has been delayed by political debates on both sides.
There has been speculation that the U.S. could adopt protectionist trade policies
due to the current global financial crisis, and that an Obama administration will
likely request overall revisions to the FTA, especially with regards to the
automobile sector.
Obama, who recently described the free trade deal as "badly flawed" in terms of
fairness, has often stated that bilateral auto trade between South Korea and the
U.S. strongly favors the former.
South Korea shipped about 700,000 automobiles to the U.S. last year while
importing 5,000 from the U.S. Democrats also want more steel shipments to be
allowed into South Korea.
Under the free trade deal, the two sides agreed to slash and phase out tariffs on
autos, while South Korea promised to change its tax system for larger vehicles.
"As to agreements on the auto trade, there is nothing new that the U.S. gets
through possible renegotiations," Lee said adding that tax and non-tax issues
were all resolved.
Last week, South Korean Trade Minister Kim Jong-hoon also said last week the U.S.
auto industry's difficulties are not new ones and of its own making, adding that
U.S. automakers should strengthen their own competitiveness.
U.S. automakers have called for a guaranteed market share, but current
administration officials under outgoing President George W. Bush say the trade
deal will not make such guarantees.
Obama's foreign policy adviser also said earlier this month the new
administration will submit the trade bill early next year, but set several
preconditions, including the "strengthening of access by American automobile
exports to the Korean market."
U.S. lawmakers have been shying away from taking action during election season,
while ruling party lawmakers in South Korea have been pushing for quick approval
of the deal by the National Assembly.
South Korean President Lee Myung-bak and U.S. President George W. Bush agreed
during an April 19 summit to make joint efforts to gain approval of the FTA by
their respective legislatures by the end of the year.
The accord, if ratified, will knock down tariff and non-tariff barriers between
the world's largest and 11th-largest economies, which did US$78.4 billion in
two-way trade in 2007.
For the U.S., the deal with South Korea would be its biggest since the North
American Free Trade Agreement with Mexico and Canada in 1994.
sam@yna.co.kr
(END)
