US and South Korea agree trade deal

The United States and South Korea successfully concluded a free trade agreement after almost 10 months of negotiations, a US official said today.

The deal, which requires legislative approval in both countries, is the biggest for the United States since the North American Free Trade Agreement signed in 1992 and ratified in 1993. It is the biggest ever for South Korea.

Steve Norton, a spokesman for the Office of the US Trade Representative, said details would be provided in a briefing later.

The two countries started negotiations last June in Washington, alternating meeting sites between the two countries.

Both sides strongly advocated a deal, saying it would boost trade and economic growth in the two countries, which already do more than $75bn (€56.2m) in trade a year.

Differences over trade in cars, agriculture, textiles and other issues, including the status of South Korean goods manufactured at a small enclave in North Korea, had thrown up obstacles.

In the final round of talks in Seoul, South Korean Trade Minister Kim Hyun-chong and Deputy US Trade Representative Karan Bhatia and their subordinates held eight days of marathon talks, sometimes going all night, to finally clinch the deal.

The two sides had exceeded self-imposed deadlines twice since Saturday and it was unclear whether they would be able to finish in time or reach an agreement at all.

The negotiators were under pressure because US President George Bush must notify Congress that he plans to sign a trade agreement 90 days before his special Trade Promotion Authority expires on July 1, meaning the agreement had to be concluded by the beginning of April.

That so-called “fast track” authority allows Congress to ratify or reject, but not modify, trade deals negotiated by the White House.

Originally, the US said a deal needed to be wrapped by March 31, but on Saturday US officials said the deadline was April 1 in the United States.

Shortly after midnight in Washington, the White House released the text of a letter from Bush to congressional leaders, dated on April 1, stating his intention to enter into a free trade agreement with South Korea.

He said the agreement “will generate export opportunities for US farmers, ranchers, manufacturers, and service suppliers, promote economic growth and the creation of better paying jobs in the United States, and help American consumers save money while offering them greater choices.”

“The agreement will also further enhance the strong United States-Korea partnership, which has served as a force for stability and prosperity in Asia,” he said.

But South Korean labour and farm groups have denounced the deal, saying an influx of US imports will cost jobs and harm livelihoods.

A protester set himself on fire yesterday shouting “Stop the Korea-US FTA” outside the hotel where negotiators were meeting. He was being treated for third-degree burns, police said.