U.S. to address auto imbalance before ratification: Cutler

By Hwang Doo-hyong

WASHINGTON, Oct. 14 (Yonhap) -- The Barack Obama administration will try to address an imbalance in auto trade before presenting a pending free trade deal with South Korea to Congress for atification, a senior U.S. trade official said Wednesday.

"It's apparent that more can be done and should be done in the automotive sector
to help level the playing field for U.S. companies and workers in this important
sector," Wendy Cutler, assistant U.S. Trade Representative, told a hearing of the
House Foreign Affairs Committee.
South Korean and U.S. lawmakers have not yet ratified the KORUS FTA signed in
2007, the largest for the U.S. since the North American Free Trade Agreement that
went into effect in 1994.
Officials in both Korea and the U.S. have said they favor side agreements to
address U.S. concerns about the auto issue and restricted shipments of U.S. beef,
rather than revising the text of the deal itself.
Congressional Democrats are concerned about a backlash from trade unions, a
political power base for the party, as fears mount over possible job cuts amid
the worst recession in decades.
Rep. Edward Royce (R-California) rebutted such concerns.
"I think turning our backs on KORUS as we are is a huge slight to our ally, to
South Korea, not to mention a missed economic opportunity," he said. "Despite
these sentiments in Congress, Asia is changing. China, not the United States, is
now South Korea's largest export market. The European Union has completed a free
trade agreement of its own with South Korea. And India recently signed a trade
agreement with South Korea."
Royce noted the benefits of the KORUS FTA.
"By one estimate, the KORUS FTA would increase trade $20 billion," he said.
"That's from $80 billion to $100 billion between our two countries, and still,
there are few amongst the majority that are calling for this agreement to be
ratified. Fewer still among the leadership."
South Korean ambassador Han Duck-soo last week predicted that ratification of the
FTA would come in late 2009 or early 2010 after completion of health care reform
in the U.S., although he said progress on trade issues may not be easy due to
falling support for free trade in the wake of the economic crisis.
Other priorities for the Obama administration, including global warming,
financial reform and next year's mid-term elections, will also likely serve as
hurdles to the early ratification of the FTA, Han said.
U.S. Ambassador to South Korea Kathleen Stephens said last month that she could
not "predict a timeframe" for the FTA's ratification, but expressed hope the two
sides will "come up with a way forward."
South Korea is the seventh-largest trading partner of the U.S., with trade in
goods reaching US$83 billion in 2008, and trade in services reaching $19 billion
in 2007.
Han said that 91.6 percent out of a total of 324 comments sent to the U.S Trade
Representative supported the KORUS FTA's ratification. The office had requested
public feedback in July to assess the viability of the pending agreement.
Cutler said that she found "overwhelming support" for the KORUS FTA after
reviewing the public comments, but also highlighted concerns filed by the United
Auto Workers Union and other workers' groups.
While meeting with South Korean President Lee Myung-bak in June, Obama agreed to
make efforts to "chart a way forward," and said he will seek the appropriate
"political timing" for submission of the KORUS FTA to Congress "once we have
resolved some of the substantive issues."
hdh@yna.co.kr
(END)