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US reaffirms beef issue must be resolved before FTA conclusion

2007/01/23

U.S. reaffirms beef issue must be resolved before FTA conclusion

WASHINGTON, Jan. 22 (Yonhap) — The United States wants a full reopening of South Korea’s beef market before it concludes a bilateral free trade agreement (FTA), a senior trade negotiator reiterated Monday.

The FTA and beef issues are separate, Wendy Cutler, assistant U.S. trade representative, said.

"But they are related to the extent we made it clear to Korea than the FTA is not going to happen unless the market is fully reopened to U.S. beef," she told reporters in a teleconference.

"We are watching closely," she said.

Cutler is the chief U.S. negotiator in the FTA talks that just finished a sixth round in South Korea last week. Another session is scheduled from Feb. 14 in the U.S., and Cutler did not rule out the possibility of additional rounds.

"We are leaving it open," she said. "We need to see how much progress we make in the seventh round."
Tough issues stand in the way of the trade pact that for the U.S. side needs to be wrapped up by end of March in order to obtain congressional approval under the trade promotion authority (TPA).

The authority requires the Congress to vote up or down on the FTA without seeking amendments. The temporary legislation expires in July, but the draft FTA has to be submitted to Congress 90 days in advance for review.

The agricultural market remains a sensitive area for South Korea, which also faces U.S. pressure in the automobile and pharmaceutical sectors. Seoul’s demands include more access in textiles and changes to U.S. trade remedies, notably countervailing duties and anti-dumping practices.

Cutler said the U.S. is prepared to look at trade remedies that do not require a change in law.

In textiles, she said the U.S. is working on improving its offer.

Beef became a contentious issue when South Korea, having agreed to resume imports of boneless products, turned away shipments after discovering some bone chips.

Cutler reaffirmed that the U.S. goal is a full reopening of the South Korean market, including bone-in products, by the time the FTA is concluded.

"I would hope that when we get back together with Korea, we can find a path forward not only on the boneless issue but that we can also look to how we can achieve a full reopening of the market in coming months," she said.


 source: Yonhap