South Korea expects FTA talks with US next month
Posted: 13 April 2009 2314 hrs

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SEOUL: South Korea expects new talks with the United States next month on ratifying a free trade pact, its trade minister said, adding Washington now seems more in favour of the deal.

The US administration appears to be increasingly "positive" about the accord, which was signed in 2007 but still needs ratification by the legislatures of both countries, minister Kim Jong-Hoon told parliament.

"I believe (both countries) will be able to open discussions in May" ahead of a planned summit in June, he said.

Before his election as US President in November, Barack Obama called the deal "badly flawed." He said it did too little to narrow a huge trade imbalance in Seoul's favour in the auto trade.

South Korea has ruled out renegotiating the pact.

US officials did not mention renegotiation, although they have expressed dissatisfaction with the pact, Kim said.

A US trade journal last week quoted Assistant US Trade Representative Danny Sepulveda as saying Washington would try to address outstanding issues on trade agreements without renegotiating, Kim said.

"I see such remarks as very positive signs," he said, urging parliament to ratify the pact as soon as possible.

The ruling Grand National Party argues that approval by Seoul will encourage the US Congress to approve it too. Opposition legislators say it is premature to endorse the pact until the US side appears more favourable.

South Korea shipped about 700,000 cars to the United States in 2007 while 5,000 moved in the opposite direction, official figures showed.

Analysts in Seoul say the figures are misleading, since they exclude more than 125,000 vehicles made by a General Motors subsidiary in Korea while including vehicles made by a Hyundai plant in Alabama. - AFP/de