Local U.S. biz group confident about ratification of KORUS FTA

SEOUL, Oct. 19 (Yonhap) -- The head of the American business community in South
Korea said Monday she is optimistic about the ratification of a free trade deal
between the two countries, though more discussion is needed on auto trade-related
issues.

The accord, known as the KORUS FTA, was signed in June 2007, but its ratification
in both countries has been stymied by disagreements on auto and beef trade.
"The chance of the KORUF FTA not being ratified is zero," Amy Jackson, the
president of the American Chamber of Commerce and Industry (AMCHAM), told
reporters. "We will continue to support the KORUS FTA and it should be ratified
as soon as possible."
Jackson said domestic politics in the U.S. are making it difficult for Congress
to take up the free trade deal at this time. "I am certain that it is not a
matter of 'if' but simply a matter of 'when,'" she said.
Jackson, formerly deputy assistant U.S. trade representative (USTR) for Korea,
was appointed in August as the new president of AMCHAM.
U.S. President Barack Obama is concentrating on issues such as health care
reform, she said. Congressional Democrats are also 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.
Washington has been hinting at a possible renegotiation, citing an imbalance in
auto trade between the two sides, while Seoul has reiterated that it will not
revise the text of the deal itself. Some U.S. officials are reportedly hoping to
address the concerns via side agreements.
"The Obama administration wants further discussion, and the auto environment
globally has changed dramatically," Jackson said. "Without renegotiation, both
sides will be able to produce mutually satisfactory results," she said.
The accord, if it takes effect, will boost South Korea's economic growth by 6
percent over the long-term and help create 340,000 new jobs, according to the
state-run Korea Institute for International Economic Policy.
The U.S., the world's largest economy and South Korea's second-largest trading
partner, conducted US$84.7 billion in two way trade last year.
Last week, South Korea and the European Union initialed a free trade deal,
bolstering their efforts to emerge from the deepest global recession in seven
decades. The accord still needs the backing of South Korean lawmakers and EU
member countries.
sam@yna.co.kr
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