US trade body says it will be difficult for Korea to join TPP negotiations
The Hankyoreh | Dec.14, 2013
US trade body says it will be difficult for Korea to join TPP negotiations
Seoul maintaining its interest in joining though there remain issues on car tariffs and sharing of financial data
By Park Hyun, Washington correspondent and Lee Chun-jae, staff reporter
The Office of the US Trade Representative is demanding that Seoul address four major trade issues before participation in the Trans-Pacific Partnership (TPP).
Acting Deputy US Trade Representative Wendy Cutler discussed the issue at a seminar on South Korea’s TPP participation at the Center for Strategic and International Studies (CSIS) in Washington on Dec. 12.
“We think we are in the end game,” Cutler said of the TPP talks under way now with twelve countries. “I think it will be very, very difficult for any country, including (South) Korea, to join the ongoing negotiations.”
Her remarks reaffirm Washington’s position that based on the schedule, South Korea would only be able to take part in the agreement after the twelve countries have agreed on the text.
Cutler also said Seoul would have to address areas of concern about implementing the South Korea-US Free Trade Agreement (KORUS FTA) before joining the TPP.
“We think that South Korea is a natural candidate to join the TPP for a number of reasons," Cutler said, noting that it agreed to high-level FTAs.
But she also South Korea would have to take action quickly to resolve issues of concern for the US Congress and stakeholders, namely the sharing of financial data, non-tariff barriers on cars, organic goods certification, and customs origin verification.
On the financial data issue, US financial companies are asking to allow South Korean customer information to be transferred overseas. Transfers are currently barred because of the sensitivity of the information, which includes transaction details. The US is asking to allow its financial firms to analyze the information at affiliates in Singapore and other places and provide it to their South Korean affiliates.
Issues with non-tariff barriers on cars have to do with the so-called “bonus-malus” system slated to go into effect in South Korea early next year. This system would assess penalties on cars with high levels of environmental pollutants, using the revenues to pay subsidies on cars that don’t pollute as much.
The US, which maintains that this system is more beneficial to European car makers that are ahead in developing more environmentally friendly models, is reportedly asking that it be structured in a way that does not hurt its own car companies.
The South Korean government said it had not changed its plans about participating in the TPP.
“Ms. Cutler’s statements were general remarks about principles,” said Woo Tae-hee, South Korea’s assistant trade minister and chief FTA negotiator.
“TPP procedures have been under way since we announced our interest in participating,” Woo added. “We also had bilateral talks with the US during the TPP cabinet committee meeting on Dec. 7 to 10 in Singapore.”
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