U.S. pledges quick solution to auto, other issues for FTA's approval

WASHINGTON, March 31 (Yonhap) -- U.S. Trade Representative Ron Kirk Tuesday said that the administration will quickly address an imbalance in auto trade and other issues for early congressional ratification of the free trade deal with South Korea.

In an annual National Trade Estimate Report to Congress, the chief U.S. trade
negotiator said that the Barack Obama administration "will promptly, but
effectively, address the issues surrounding the KORUS FTA, including concerns
that have been expressed regarding automotive trade."
He was repeating his remarks made earlier this month at his Senate confirmation
hearing that he will work closely with South Korea to address U.S. concerns over
restricted shipments of U.S. beef and the auto issue before bringing the Korea
FTA to Congress for ratification.
Kirk said at that time he will prioritize beef before moving to the auto issue.
The Korea FTA, signed in 2007, is awaiting congressional approval amid growing
protectionism in the Democrat-controlled Congress, which fears its ratification
will undermine support from U.S. trade unions, their political base, due to
possible job cuts in the worst recession in decades.
Obama has opposed ratification of what he called a "badly flawed" free trade
agreement with South Korea due to the auto trade, although South Korea disputes
the U.S. figures, which include hundreds of thousands of autos produced by
Hyundai Motor's plant in Alabama.
U.S. congressmen have also complained about South Korea's ban on shipments of
beef from cattle older than 30 months due to concerns over mad cow disease, a
case of which was reported in 2003 at a cattle farm in the state of Washington.
Seoul and Washington agreed to limit shipments of beef to those from cattle less
than 30 months old after the resumption of U.S. beef imports caused a public
outcry in South Korea last summer on health concerns.
U.S. beef regained its status as the biggest selling product in South Korea
against Korean and Australian beef just months after full scale imports began
again late last year.
South Korea's National Assembly is delaying deliberations on the Korea-U.S. FTA,
citing growing pessimism in the U.S. Congress.
South Korean officials have said they will not renegotiate the FTA, while experts
suggest "creativity" in addressing shortfalls by way of side agreements or other
forms without revising the agreement itself.
In the report, Kirk said that the Korea FTA, if approved, "would help to solidify
the two countries' long-standing geostrategic alliance in addition to
strengthening our economic partnership."
He also expressed hope that the free trade deal, the biggest for the U.S. since
1993 when the North American Free Trade Agreement was implemented, "could be a
model for trade agreements for the rest of the region, and underscore the U.S.
commitment to, and engagement in, the Asia-Pacific region."
The U.S., said to be aiming for similar agreements with China, Japan and other
Asian economies, fears that any failure to ratify the Korea FTA will have an
adverse impact of U.S. products in South Korea, which recently concluded a free
trade deal with the European Union.
South Korea is also seeking FTAs with several other countries.
The report estimated that the Korea FTA "would add US$10 billion to $12 billion
to annual U.S. Gross Domestic Product and around $10 billion to annual
merchandise exports to Korea."
hdh@yna.co.kr
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