US, KOREA, CONTINUE PUSH FOR FTA AHEAD OF END-MARCH DEADLINE
Lead negotiators from South Korea and the US started a week of high-level informal discussions in Washington on 19 March, in an attempt to resolve the final outstanding issues in their free trade agreement (FTA) talks.
"I’ll make my utmost efforts to narrow remaining differences as much as possible this week," South Korean chief negotiator Kim Jong-hoon said on the first day of negotiations. He stated that fewer than ten issues remained resolved; automotive and agriculture matters being the most contentious among them. Another controversial issue is whether products made in the Kaesong Industrial Complex (a South Korean-owned complex in North Korea) could be covered by the agreement.
Jong-hoon said he was still confident that the negotiations could be completed by the 30 March deadline, in time to take advantage of the Bush administration’s ‘fast-track’ trade promotion authority (see BRIDGES Weekly, 14 March 2007).
Agriculture negotiators meeting in South Korea at the beginning of the week agreed only on their disagreements. Washington still wants immediate tariff reductions on sensitive products, while Seoul continues to push for a ten year phase-out period. The US is still trying to include rice in the FTA, despite Korea’s adamant rejection.
Separate talks on textiles also failed to iron out remaining disagreements.
Speaking to a Congressional committee on 20 March, Deputy US Trade Representative Karan Bhatia acknowledged that "significant issues remain in a number of chapters." Nevertheless, he called on them to support the prospective FTA, warning that the proliferation of trade pacts in the region risked leaving US companies on the sidelines.
South Korean Trade Minister Kim Hyun-chong and Deputy US Trade Representative Karan Bhatia will meet in Seoul from 26 March for a final attempt to conclude a deal before the deadline. Wendy Cutler, who has been the US’ lead negotiator thus far, will stay in Washington to address legislators’ qualms and try to solidify Congressional support for an FTA.
ICTSD reporting; "Sticking points in talks for South Korea- US trade deal," YONHAP NEWS, 18 March, 2007; "Last-ditch FTA talks making progress: Seoul official," YONHAP NEWS, 19 March 2007; "The final round of ROK-US FTA negotiations set," DONG-A, 21 March 2007; "South Korea-US FTA talks near agreement: Seoul’s negotiator," YONHAP NEWS, 20 March 2007.