S. Korean trade minister rules out renegotiation of KORUS FTA

SEOUL, March 11 (Yonhap) -- South Korea's top trade official said Wednesday that
the government will not accept a possible request from the United States to amend
a bilateral free trade agreement (FTA).
The comment comes after the nominee for U.S. trade representative said Monday
that the KORUS FTA is not acceptable as it stands, sparking speculation here that
Washington may officially demand renegotiations. The 2007 accord is pending
parliamentary approval in both countries.
"Our stance has not changed. There are (to be) no renegotiations and additional
negotiations," Trade Minister Kim Jong-hoon told a radio program.
Kim said Kirk's remarks are not viewed as a reflection of Washington's official
stance, and hence don't require an official response. "The U.S. recognizes that
reopening the agreed issues is extremely dangerous," Kim said.
Ahead of his election late last year, Obama labeled the deal "badly flawed,"
saying it did too little to narrow a huge trade imbalance in South Korea's favor,
especially in auto trade.
In January, U.S. Secretary of State Hillary Clinton also cited the imbalance in
the auto trade during her confirmation hearing in January.
South Korea has strongly ruled out renegotiating the pact, which cleared a
parliamentary subcommittee last month despite strong opposition from opposition
parties.
The pact, the largest for the U.S. since it signed the North American Free Trade
Agreement in 1994, is awaiting ratification by both countries' legislatures.
If ratified, the bill, also labeled as the biggest ever for South Korea, will
knock down tariff and non-tariff barriers between the two economies, which did
US$78.4 billion in two-way trade in 2007.
Many Democrats believe the deal's auto provisions heavily favor South Korea's
automakers and have demanded renegotiation. South Korea sold more than 700,000
vehicles in the U.S. in 2007 -- roughly 100 times the number of American cars it
imported, according to an industry tally.
Under the pact, the two sides agreed to cut and phase out tariffs on autos. Seoul
agreed to change its tax system for larger vehicles, a provision the U.S. has
labeled discriminatory.
"All the things that U.S. automakers want are in the agreement," Kim said. "If
the agreement is carried out, U.S. automakers will get more access to the South
Korean market."
South Korean President Lee Myung-bak and his Grand National Party (GNP) aim to
win quick approval of the pact at home in the hope it will put pressure on
Washington to follow suit.
The conservative GNP holds a majority 172 seats in the 299-seat, single-chamber
National Assembly.
On Tuesday, Hong Joon-pyo, the GNP's floor leader, said South Korea's legislative
body will vote on the deal independent of developments in the U.S.
sam@yna.co.kr
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