SKorea official warns FTA with US could collapse
Agence France-Presse | Wed May 16, 2007
SKorea official warns FTA with US could collapse
SEOUL (AFP) — A senior South Korean official warned Wednesday that the free trade deal with the United States could collapse if Washington "unilaterally" urges Seoul to revise it to reflect new US policy guidelines.
"If the US demands South Korea renegotiate to reflect its unilateral view, we could break down the agreement," Kim Jong-Hoon, South Korea’s chief negotiator in the talks, told Yonhap news agency in an interview.
"We couldn’t one-sidedly accept a request to renegotiate the agreement that already reflects the balance of interests," Kim said.
Foreign Minister Song Min-Soon separately ruled out changes to the accord struck last month after 10 months of tough negotiations.
"The government has a firm stance that it is not an issue to be renegotiated," he told a weekly briefing.
Song said Washington had not yet proposed any changes. But US ambassador Alexander Vershbow told a forum Tuesday that work should be done to adapt the deal to reflect the new US trade policy.
The two countries, whose two-way trade reached 74 billion dollars in 2006, reached the agreement in early April. It is awaiting legislative approval in Seoul and Washington.
Last week Congress and the White House agreed a bipartisan deal that sets social and environmental standards for free-trade agreements.
It would require pending pacts to include five core International Labour Organisation standards, and also laws to implement obligations under seven multilateral environmental agreements.
Exports account for more than 70 percent of South Korea’s gross domestic product and the government has been pushing aggressively for deals. Last week it began talks with the
European Union.
Seoul has FTAs in operation with Chile and Singapore and a pact with the Association of Southeast Asian Nations, excluding Thailand, will take effect on June 1.
Seoul is reportedly close to a pact with Canada and in June is set to begin a second feasibility study with China.
Deputy Trade Minister Kim Han-Soo said earlier Wednesday that private research institutions in South Korea and Australia will begin a joint study this year on a possible agreement.
"When the study is completed, government officials from the two sides will meet to set parameters for preliminary discussions," he said in a statement distributed by the Federation of Korean Industries.
Kim’s ministry confirmed the plan.
The deputy minister, responding to the federation’s request for a quick start to talks with Australia, said "a cautious approach is needed" because of sensitive agricultural sectors.
South Korea managed to exclude its culturally sensitive rice sector from the US talks but pledged to open its beef market wider to US exports, a move which could hurt Australian farmers.
Australia is South Korea’s eighth largest trading partner with two-way trade reaching some 14 billion dollars a year.
