Imbalance in car trade irrelevant to KORUS FTA: official

SEOUL, Dec. 10 (Yonhap) -- The imbalance between U.S. and South Korean auto sales
in each other's markets should have no bearing on the bilateral free trade
agreement (FTA) waiting ratification, a senior Seoul official said Wednesday.
Trade Minister Kim Jong-hoon said that although critics have pointed out that
South Korea sells 700,000 vehicles in the U.S. annually, while the U.S. sells
only 5,000 cars in South Korea, the comparison is inappropriate since the
imbalance between the U.S. and Japan is even greater.
"There has been repeated mention of the imbalance during the recent U.S.
presidential election, but if numbers are going to be an issue, Japan sells 6
million units every year compared to 200,000 for U.S. cars in the Japanese
market," he stressed.
Seoul and Washington officially signed the bilateral KORUS FTA in June 2007, but
lawmakers have yet to ratify the deal.
Seoul's point man on trade said as long as there are no distortions that affect
trade, numbers should not be an issue.
Kim said that in addition, little has been mentioned about the fact that 200,000
U.S. cars are made locally. GM currently manages GM Daewoo Auto & Technology Co.,
which churns out 100,000-120,000 units for the local market every year, he said.
The expert, meanwhile, said Seoul has a vested interest in the health of U.S.
automakers because they are important importers of automotive components.
The official said that while there has been speculation that Washington may ask
for a renegotiation of the FTA, particularly in terms of automobiles, he has not
yet received a formal request.
yonngong@yna.co.kr
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