U.S. considering Korea-EU FTA in reviewing FTA with Korea

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SEOUL, Dec. 7 (Yonhap) -- The United States is considering a free trade agreement
between South Korea and the European Union as it reviews its stalled free trade
deal with South Korea, a senior U.S. trade official said Monday.

"We are looking very carefully at tariff schedules of the Korea-EU FTA," Wendy
Cutler, Assistant U.S. Trade Representative for Japan, Korea and APEC Affairs,
said at a forum in Seoul.
South Korea and the U.S. signed the deal in 2007, but the deal's ratification has
been delayed in both nations because of strong opposition from some stakeholders,
particularly farmers in South Korea and auto workers in the U.S.
Meanwhile, South Korea and the European Union signed a similar deal in September
this year, and Korean officials expect the deal to go into effect in 2010.
"Some of our suppliers have expressed concerns because once the Korea-EU deal
goes into effect, their European competitors would gain price advantages," said
Cutler, who served as the chief U.S. negotiator in free trade talks with South
Korea.
Cutler said the U.S. government's review was aimed at moving the Korea-US FTA
forward by effectively addressing concerns from its automakers.
"We are focused on doing our review, doing it expeditiously ... to find the most
effective way to address concerns," she said.
The U.S. wants South Korea to change auto provisions in the pending agreement,
calling for Seoul to level the playing field in the country's auto market.
When U.S. President Barack Obama visited Seoul in November for a summit with
South Korean President Lee Myung-bak, Lee said his government was willing to
discuss the auto trade.
"If the auto issue is a problem, we are in a position to discuss it again," Lee
said in a televised press conference after the summit with Obama.
The one-day forum was jointly hosted by South Korea's Korea International Trade
Association and the U.S.-based Peterson Institute for International Economics.
At the forum, South Korea's Deputy Trade Minister Lee Hye-min urged both Seoul
and Washington to swiftly ratify the deal.
"The benefits of the Korea-US FTA go beyond economics, as the agreement would
help to solidify the two countries' long-standing geo-strategic alliance," Lee
said.
"Considering the importance and the potential benefits of the Korea-US FTA, the
agreement should be ratified by both countries sooner rather than later," Lee
said.
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