JoongAng Daily, Seoul

U.S. rejects free trade in Kaesong products

February 09, 2006 ㅡ A U.S. official said yesterday that Washington would not consider goods manufactured at an industrial park in the North Korean border city of Kaesong as South Korean products in its free-trade negotiations with Seoul. "In our view, the agreement applies to goods produced only in South Korea and the United States," a senior economic official at the U.S. Embassy in Seoul said at a background press briefing.

Asked if that position was negotiable, he said, "We hope that the Kaesong issue won’t be a major hurdle in reaching the comprehensive goal of signing the free trade agreement."

South Korea has been attempting, with mixed success, to induce its trade partners to consider goods from the complex as domestic South Korean products. About 15 South Korean companies operate there.