July 16, 2010

South Korea to address US beef dispute for early FTA

South Korea will seek creative solutions to address US concerns over the limited shipments of beef toward early ratification of a free trade deal pending for years, South Korean ambassador Han Duck-soo said Wednesday (Jul 14).

The Korea FTA, signed by the Bush administration in 2007, has been on hold, with Obama citing lopsided restricted shipments of beef.

The US president said that he will present the Korea FTA to Congress for ratification early next year if progress is made on beef.

South Korean Trade Minister Kim Jong-hoon said Seoul and Washington officials will begin discussions in late September, citing a "lack of preparedness on the part of the US side."

"I don't expect negotiations will take three to four months," he said. "We will be able to conclude them through intensive negotiations from late September."

Kim said he is not sure if Washington will ask for shipments of US beef from cattle over 30 months old, saying that does not guarantee a rise in US beef shipments due to increased concerns over safety.

He said Seoul is ready to address any problems to be raised by the US on non-tariff barriers or unfair trade practices, but added, "It is a wrong approach if the US calls for a balance in the trade of certain products while ignoring the reality where the markets have different sizes and trade volumes."

US officials have said they prefer a side agreement rather than revising the text of the FTA.

Independent studies show the implementation of the FTA with South Korea, the seventh-largest trading partner for the US, will create 240,000 jobs and increase annual two-way trade by more than US$20 billion, up from $83 billion.

The US goods trade deficit with South Korea was US$10.6 billion in 2009, down $2.8 billion from 2008, according to USTR figures.