October 17, 2007

 

S Korean trade ministry urges ratification of US FTA

 

 

South Korea's top trade official Wednesday urged quick ratification of a free trade deal with the US, saying the drawn-out approval would not be beneficial to Asia' third-largest economy, Yonhap news agency reported.

 

The two countries reached the agreement in April after year-long negotiations. The pact is now subject to approval by the legislatures of both countries, but a dispute over beef trade has emerged as a hurdle to ratification in both countries.

 

In particular, Washington demanded the full opening of the local beef market, which it says is the key to Congressional support for the trade pact.

 

"If it (the trade pact) is judged to be beneficial to the national interest, it is desirable for the National Assembly to quicken the ratification of the accord," Trade Minister Kim Jong-hoon said at a forum in Seoul.

 

Kim, who was Seoul' chief negotiator for the free trade talks, said South Korea will be able to enjoy the greatest benefits from the trade deal if the country' legislature approves the accord faster than the US Congress.

 

South Korea agreed last year to resume imports of boneless American beef, partially lifting a ban imposed in 2003 after a case of mad cow disease was discovered in the US.

 

But earlier this month South Korea suspended US beef imports again after finding banned bones in a shipment for the second time in less than three months.

 

On Tuesday, Assistant US Trade Representative Wendy Cutler, who was Washington' chief negotiator for the free trade talks, said the reopening of Seoul' beef market is key to winning Congressional support for the pact.

 

Last week, the countries held two-day talks over the issue, but negotiators failed to make tangible progress. The US has expressed disappointment at South Korea's intractable stance, accusing of it going back on its earlier promise to work towards more open trade.

 

The free trade accord, if ratified, will knock down tariff and non-tariff barriers between the world' largest and 11th-largest economies, which did $74 billion in two-way trade in 2006.

 

For the US, the deal with South Korea would be its biggest since the North American Free Trade Agreement with Mexico and Canada in 1994.