(LEAD) U.S. trade rep. calls on S. Korea to address autos, beef

(ATTN: CHANGES headline, lead; UPDATES with Kirk's remarks, other details throughout)
By Hwang Doo-hyong
WASHINGTON, Nov. 5 (Yonhap) -- The top U.S. trade negotiator called on South
Korea Thursday to address Washington's concerns over an imbalance in auto trade
and limits on American beef imports so that their pending free trade deal can be
ratified.

"We are now developing proposals that will enable us to address concerns with
respect to automotive trade," U.S. Trade Representative Ron Kirk said in a forum
at the U.S. Chamber of Commerce here. "We are also looking at concerns with
respect to agricultural products more broadly to see how they can be addressed
most effectively."
Autos and beef have been major hurdles to congressional approval of the free
trade agreement (FTA). Democrats are concerned that giving the deal a final nod
would draw a backlash from trade unions -- a political power base for the party
-- as fears mount over job losses amid the country's worst recession in decades.
The Barack Obama administration is also focused on other priorities such as
health care reform and the war in Afghanistan.
U.S. officials have said they favor side agreements to address the issues rather
than revising the text of the deal itself, signed in 2007.
"The American auto industry is working through a period of difficult transition,"
Kirk said. "Our market is open to Korean autos. All we are asking for is for our
own auto companies to be able to compete on a level playing field in the Korean
market. We believe that a level field is possible and within reach."
The chief U.S. trade official said that Obama has ordered him to "find a way to
address our substantive issues of concern and move the agreement forward,"
adding, "In order to realize the full potential of this agreement, it is
absolutely crucial that we get it right. Precisely because our political and
economic relationship is so important, we have to get this right. And we need the
broadest possible political support to move forward."
Kirk hoped the upcoming summit between South Korean President Lee Myung-bak and
Obama in Seoul on Nov. 19 will lead to progress.
"President Obama and President Lee have now met several times as well, and after
the Singapore APEC meetings President Obama will visit Korea," he said. "In their
discussions, President Obama and President Lee have both reiterated the need to
avoid protectionism and economic nationalism."
While meeting with Lee in Washington in June, Obama agreed to make efforts to
"chart a way forward," and said he will seek the appropriate "political timing"
for the submission of the KORUS FTA to Congress "once we have resolved some of
the substantive issues."
Myron Brilliant, senior vice president of International Affairs for the U.S.
Chamber of Commerce and the outgoing U.S.-Korea Business Council president, urged
Obama to expedite the process for ratification of the Korea FTA, saying it will
serve as a stimulus to the struggling U.S. economy.
"The Chamber and the U.S.-Korea Business Council calls on the administration to
take action on the pending U.S.-Korea Free Trade Agreement in order to boost
exports and create jobs in America," Brilliant said in a statement. "As the
economy struggles to rebound, this agreement is an immediate job-creating
stimulus."
Brilliant feared any further delay in the Korea FTA's ratification might
undermine the competitiveness of U.S. products in South Korea, 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.
"Korea is one of the largest global customers of U.S. goods and services, and
Korean companies are increasingly investing in the U.S. market," he said. "But
the European Union recently concluded its own agreement with Korea, potentially
putting U.S. exporters at a disadvantage in the Korean market and endangering
U.S. jobs."
South Korean ambassador Han Duck-soo on Wednesday called on Congress to approve
the Korea FTA by next summer, fearing that a failure to do so could push the
ratification back to after 2011 owing to by-elections next November.
Han said the ratification of the FTA, the largest for the U.S. since the North
American Free Trade Agreement took effect in 1994, "will create 240,000 new jobs
for the U.S. and increase U.S. gross domestic product by up to US$11 billion."
"I hope the Obama administration will complete the health care reform this fall
and pursue the Korea FTA's ratification as the top priority task next spring," he
said.
hdh@yna.co.kr
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