US does not have timeline for KORUS FTA’s ratification: Cutler
Yonhap 2009/10/01
U.S. does not have timeline for KORUS FTA’s ratification: Cutler
By Hwang Doo-hyong
WASHINGTON, Sept. 30 (Yonhap) — The United States does not have any timeline for the ratification of a free trade deal with South Korea, a senior U.S. trade official said Wednesday.
Wendy Cutler, Assistant U.S. Trade Representative for Japan, Korea and APEC Affairs, was speaking in a forum at the Korea Economic Institute. Her remarks came in response to South Korean Trade Minister Kim Jong-hoon, who said Tuesday that he expected the Korea-U.S. FTA to pass through both legislatures early next year.
"We hope that’s true," Cutler said. "All our efforts are really to understand concerns and figure out how the concerns can be timely addressed. There is no timeline assigned to this, but I can assure you that we are working intensively."
Cutler did not elaborate, but U.S. President Barack Obama has expressed concerns about an imbalance in auto trade and restricted shipments of U.S. beef.
While meeting with South Korean President Lee Myung-bak in June, Obama agreed to make efforts to "chart a way forward," and said he will seek the appropriate "political timing" for submission of the KORUS FTA to Congress "once we have resolved some of the substantive issues."
Cutler also said that the USTR was going over comments filed by the public on the FTA.
"We now have a record number of comments — over 300," she said. "All of them are public and available on the government Web site. We are now going through them."
The USTR filed the request for the comments in late July to assess the viability of the pending free trade deal with South Korea amid growing protectionism in the Democratic Congress and the worst recession in decades.
Another key element of the USTR’s reviewing of the Korea FTA is the Korea-European FTA, "which I understand will be initialed next month," she said. "So a careful scrutiny of that agreement will be important for us."
Tami Overby, vice president of the U.S. Chamber of Commerce, said in the KEI forum that the Korea FTA "should be ratified immediately" to "help solidify U.S. interests in the region."
Overby feared the U.S. has been losing ground in the Asia-Pacific region.
"The region is not waiting to engage other countries. Korea in particular is very actively moving toward concluding FTAs and creating more opportunities for their citizens," she said. "The U.S. has a critical opportunity to ratify the KORUS FTA. But while we are waiting, Korea has already concluded an EU FTA and initialing it early in the new year and possibly enforce it next summer. What this means to American companies in Korea is they are going to be disadvantaged."
South Korean and U.S. lawmakers have not yet ratified the trade deal, signed in 2007. It is the biggest for the U.S. since the North American Free Trade Agreement of 1992. Since 2001, the U.S. has entered into free trade agreements with 14 countries.
Officials in both Korea and the U.S. have said they favor side agreements to address thorny issues, rather than revising the text of the deal itself.
U.S. Ambassador to South Korea Kathleen Stephens said early this month that she could not "predict a timeframe" for the FTA’s ratification, but expressed hope the two sides will "come up with a way forward."
South Korea is the seventh-largest trading partner of the U.S., with trade in goods reaching US$83 billion in 2008, and trade in services reaching $19 billion in 2007, according to statistics from the USTR.
"If approved, the agreement would be the United States’ most commercially significant free trade agreement in more than 16 years," the USTR said. "The U.S. International Trade Commission estimates that the reduction of Korean tariffs and tariff-rate quotas on goods alone would add $10 billion to $12 billion to the annual U.S. GDP, and around $10 billion to U.S. annual goods exports to Korea."
