November 1, 2006

 

US, S Korea progress in free trade talks but much remains
 

 

South Korea and the United States achieved progress in a fourth round of free trade talks that ended Friday, Oct 27 but failed to clear obstacles in agriculture and other sensitive areas, informed a top negotiator in Seoul.

 

US officials too acknowledged the fact, saying they hoped to make further progress in the next rounds of talks scheduled for December and January.

 

The chief US negotiator, Wendy Cutler pointed out considerable progress was made in administration of agricultural tariff rate quotas but acknowledged that gaps still existed in agriculture and other sensitive sectors.

 

Out of the 284 items classified as sensitive agricultural products, Korea included some items, with relatively little impact from the FTA, in the list of items subject to tariff elimination.

 

Though the US offered revised tariffs on Korean exports, which could bring South Korea US$1.5 billion dollars worth of benefits, agricultural concessions were estimated at only US$88 million, said Cutler. 

 

Agriculture was Washington's main area of interest. South Korea imposes 40 percent tariffs on imported beef and the US wanted the same to be phased out.

 

South Korean agricultural groups protested Washington's insistence on a resumption of imports of all beef products and a reduction in tariffs, arguing that domestic beef prices might drop by 40 percent.

 

Reversing a two-year ban imposed after "mad cow disease" was discovered in US meat, South Korea agreed in January to resume imports of US beef products, the first shipments of which arrived Monday.

 

The import included cows under 30 months old but excluded beef ribs, which had accounted for 60 percent of US beef imports.

 

The US would want to ask for an additional proposal for bigger tariff cuts, and South Korea would continue to discuss the matter with them, said Kim adding that the sides would meet or talk before the fifth round. 

 

The two countries had originally hoped to wrap up the negotiations by the end of this year in order to ratify a deal before US President George W. Bush's "fast-track" trade promotion authority expired in mid-2007.

 

The authority, which restricts the US Congress to approve a trade pact by a simple "yes-or-no" vote without amendments, requires the agreement to be submitted at least 100 days before voting.

 

If a deal is made, it would be the largest commercial partnership for the US since the North American Free Trade Agreement in 1994.