US upbeat about trade talks with South Korea, Malaysia
Channel News Asia | 23 May 2006
US upbeat about trade talks with South Korea, Malaysia
WASHINGTON : The United States is "very optimistic" about clinching free trade agreements (FTAs) with major trading partners South Korea and Malaysia, a senior US official said.
Formal FTA talks with South Korea are due to begin here on June 5, and with Malaysia in Penang a week later.
In its negotiations with both countries, the United States has some thorny issues to thrash out, deputy US Trade Representative Karan Bhatia said.
"But I really sense a seriousness of purpose on the part of both Malaysia and Korea in trying to move forward quickly and aggressively to reach a mutually satisfactory FTA," he told reporters.
"We’re very optimistic going into those negotiations," Bhatia said.
The US government is rushing to complete the talks before it loses "fast-track" trade authority on July 1 next year. Congress will then regain the right to amend any pact negotiated by the administration.
But among likely sticking points with Malaysia are the country’s reluctance to throw open its automobile and banking sectors. In South Korea, farmers have most notably come out angrily against any deal.
About 17,000 South Korean protestors took to the streets last month with banners complaining that a deal would make Asia’s third-largest economy "the 51st US state".
However, the US National Association of Manufacturers (NAM) and the Korea International Trade Association (KITA) came together Monday to lobby for the FTA.
A successful agreement "presents an unparalleled opportunity" to boost economic growth and jobs in both countries, NAM president John Engler and KITA chairman Lee Hee-Beom said in a joint statement.
Christopher Wenk, the NAM’s director of international trade policy, said that only seven percent of the massive US trade deficit is with countries that have concluded FTAs with the United States.
"US industry can compete with anyone on a level playing field, and that is what FTAs are all about," he said. - AFP/de
