AMCHAM chief rules out FTA renegotiation
Korea Times | 10-19-2009
AMCHAM chief rules out FTA renegotiation
By Jane Han
Staff Reporter
The new chief of the American Chamber of Commerce in Korea (AMCHAM) said Monday that the long-stalled Korea-U.S. free trade agreement (FTA) will not undergo renegotiation, but didn’t rule out "further bilateral discussions" regarding provisions related to the auto sector.
"The chances of the pact not being ratified are zero," Amy Jackson, president of AMCHAM Korea, said in her first press conference since taking office in August.
She said, however, that Seoul and Washington will have additional talks to sort out differences over the auto issue.
Auto trade has been one of the stickiest subjects that have prevented the FTA ― which was signed in June 2007 ― from getting ratified both in the U.S. Congress and South Korea’s National Assembly.
Under the current terms, the two sides agreed to cut and phase out tariffs on autos. Seoul said it would change its tax system for larger vehicles, which the U.S. claimed was discriminatory against American cars.
But Washington has been hinting at a possible renegotiation, citing an imbalance in auto trade between the two countries.
"The Obama administration has made it clear that it wants to have further discussion with the Korean government," said Jackson, adding "The auto environment has changed dramatically since the negotiations first began, so it makes sense that the two sides talk.
"I think this is possible though without renegotiation."
Jackson’s remarks come just days after Assistant U.S. Trade Representative Wendy Cutler told a hearing of the House Foreign Affairs Committee that the U.S. will try to address concerns it has about the auto issue before presenting the trade deal to Congress for ratification.
South Korea sold more than 700,000 vehicles in the U.S. ― Seoul’s second-largest trading partner ― in 2007, 100 times the number of American cars it imported, according to industry data.
The former deputy assistant U.S. trade representative for Korea said U.S. President Barack Obama’s current primary agenda is health care, but expressed hopes that the Korea-U.S. FTA will be taken up soon.
"Hopefully, the initialing of the pact will light a fire among policymakers in Washington," said Jackson, who added that she doesn’t want tariffs on European goods reduced before U.S. goods.
South Korea and the European Union initiated a free trade accord last week. Under the agreement, the two sides will phase out tariffs on 96 percent of EU goods and 99 percent of South Korean goods over the next three years.
