Seoul rules out U.S. FTA renegotiation

SEOUL, Nov. 6 (Yonhap) -- South Korea's top trade official said Thursday that a
renegotiation of a free trade deal with the United States is out of the question
amid speculation that U.S. president-elect Barack Obama may demand revisions to
the historic trade accord minted last year.

The two countries reached an agreement in April 2007 after a year of
negotiations. The pact is now subject to approval by the legislatures of both
countries, but ratification has been delayed by political debates on both sides.
"There will be no renegotiations of the trade deal, and our stance (no
renegotiations) will be maintained," South Korean Trade Minister Kim Jong-hoon
said in a radio interview.
There has been speculation that the U.S. could adopt protectionist trade policies
due to the current global financial crisis, and that an Obama administration will
likely request an overall revisions of the FTA, especially with regards to the
automobile sector.
Obama, who recently described the free trade deal as "badly flawed" in terms of
fairness, has often stated that bilateral auto trade between South Korea and the
U.S. strongly favors the former.
South Korea shipped about 700,000 automobiles to the U.S. last year while
importing 5,000 from the U.S. Democrats also want more steel shipments to be
allowed into South Korea.
"The problems facing the U.S. auto industry are not new ones," Kim said adding
that U.S. automakers should make efforts to boost their competitiveness.
U.S. automakers have called for a guaranteed market share, but current
administration officials under outgoing President George W. Bush say the trade
deal will not make such guarantees.
Obama's foreign policy adviser also said last week the new administration will
submit the trade bill early next year, but set several preconditions, including
the "strengthening of access by American automobile exports to the Korean
market."
U.S. lawmakers have been shying away from taking action during election season,
while ruling party lawmakers in South Korea have been pushing for quick approval
of the deal by the National Assembly.
South Korean President Lee Myung-bak and U.S. President George W. Bush agreed
during an April 19 summit to make joint efforts to gain approval of the FTA by
their respective legislatures by the end of the year.
The accord, if ratified, will knock down tariff and non-tariff barriers between
the world's largest and 11th-largest economies, which did US$78.4 billion in
two-way trade in 2007.
For the U.S., the deal with South Korea would be its biggest since the North
American Free Trade Agreement with Mexico and Canada in 1994.
sam@yna.co.kr
(END)