No major breakthrough in US-S Korea free trade talks
Dow Jones
US Aide: No Major Breakthrough In US-S Korea Free Trade Talks
By John Godfrey, OF DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- U.S.-South Korea free trade talks netted some progress this week, but as expected at least one more session, the eighth so far, will be needed to reach a final deal, the lead U.S. negotiator in those talks said Wednesday.
"I am encouraged by results of meetings this week, across the board," U.S. Assistant Trade Representative Wendy Cutler said in Washington. But, "I have no major breakthrough to announce," she said.
Cutler said negotiators would meet for an eighth round during the week of March 5 in South Korea.
Asked if that would be the last round, Cutler would only quip that it will be the "next round."
Nearly 200 negotiators on each side have been in Washington since Sunday, but no major advances were made on the thornier issues facing the talks.
Cutler on Sunday had predicted that the week’s shortened negotiating session wouldn’t be enough to resolve all the outstanding issues. The session was shortened to upcoming holidays in the U.S. and South Korea.
All working groups, including four that failed to meet during the sixth round three weeks ago, met in the foreshortened negotiating session, which ended Wednesday afternoon.
During the sixth round, working groups on automotive, pharmaceutical and trade remedies failed to meet.
The Bush administration is hoping to conclude the talks before President George W. Bush’s trade promotion authority expires this summer.
That authority allows the administration to submit to Congress trade agreements for consideration without amendment. Renewal of that authority, particularly in light of the administration’s unwillingness to negotiate for tougher labor and environmental standards in trade talks, is questionable given the Democrats’ recent takeover of Congress.
To take advantage of his authority, Bush must give Congress 90-days advance notice. So with the trade promotion authority expiring July 1, the administration has, in effect, until March 30 to complete the South Korea free trade deal.
Still the week’s negotitations had their highlights.
Cutler said a conceptual agreement was reached on e-commerce. That agreement includes provisions guaranteeing duty-free status and non-discriminatory treatment for electronically traded products, such as software, music and movies. The agreement also includes provisions on electronic signatures, online consumer protections, paperless trading and cross-border information flows.
Negotiators also agreed on specific rules of origin for "critical products" such as chemicals, pharmaceuticals and plastics, Cutler said.
Key disagreements on automotive products, trade remedies and rice remain, she said.
But both sides agreed to tariff improvements in numerous sectors, including chemicals, cosmetics, industrial machinery and information technology products.
