S. Korea, U.S. agree to make efforts for early ratification of pending FTA

WASHINGTON, May 14 (Yonhap) -- South Korea and the United States Thursday agreed to make efforts for speedy ratification of the pending bilateral free trade agreement, faltering for two years over auto sales and restricted shipments of U.S. beef, South Korea's chief trade negotiator said.

"We've drawn a common understanding that the Korea-U.S. FTA should be implemented
without fail," Kim Jong-hoon told reporters after a meeting with U.S. Trade
Representative Ron Kirk. "We've agreed that we need to find a solution as soon as
possible, although we have some difficulties."
Kim said he did not discuss detailed issues such as the auto and beef during the
meeting with Kirk, the first of its kind since Kirk took office in March.
"We've discussed neither detailed issues nor renegotiation," he said. "We will
meet three or four more times this year and we will be able to find a solution
through bilateral meetings on the margins of the Asia-Pacific Economic
Cooperation and the Organization of Economic Cooperation and Development forums."
U.S. officials have said they need to address what they call is an imbalance in
auto sales and restricted shipments of U.S. beef before bringing the deal to
Congress for a vote.
Deputy Trade Representative Demetrios Marantis recently said that he had concerns
"particularly with respect to autos, and that there is a need for further
progress on reopening Korea's market to U.S. beef," adding that his office would
prefer to address the concern in side agreements without revising the text of the
deal itself.
Kirk issued a brief statement after the meeting.
"I brought Minister Kim up to date on our review of the FTA and how we plan to
consult with Congress and stakeholders regarding their concerns," he said. "I
look forward to working closely with the minister to address such concerns, while
also taking into account Korea's interests, so that we can best determine how to
move this important agreement forward."
U.S. President Barack Obama has yet to send the FTA to Congress for a vote amid
growing protectionist sentiment among Democrats.
Obama has taken issue with what he has called lopsided 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.
South Korea counters that GM Daewoo, General Motor's Korean subsidiary, sold more
than 110,000 cars in Korea last year, 11.7 percent of the Korean market, which is
much more than Hyundai and Kia Motors' market share in the U.S., at about seven
percent for the first several months this year.
Kirk also cited the "significant economic and strategic benefits to both
countries" and "the U.S. commitment to expanding our economic engagement and
leadership in Asia" once the Korea-U.S. FTA is implemented.
In a separate statement, the USTR said that the Korea FTA, the biggest for the
U.S. since 1993, when the North American Free Agreement was signed, would
increase annual U.S. exports to Korea by more than US$10 billion and increase
U.S. growth domestic product by $10 to 12 billion annually.
South Korean Ambassador Han Duck-soo said last week that his government has "no
intention of reopening already-concluded agreements," although he said that Seoul
will address the stumbling blocks to ratification.
South Korea's National Assembly foreign affairs and trade committee has approved
the pact, signaling possible ratification by the plenary parliamentary session in
June.
South Korean officials hope that the Kim-Kirk meeting will pave the way for a
possible deal ahead of the upcoming summit on June 16 in Washington between Obama
and South Korean President Lee Myung-bak.
At a summit in London last month, the first of its kind, Lee and Obama "agreed
that the U.S.-Korea Free Trade Agreement could bring benefits to both countries
and committed to working together to chart a way forward."
hdh@yna.co.kr
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