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S. Korea rules out possible change in auto provisions of U.S. trade deal
SEOUL, June 13 (Yonhap) -- A senior South Korean trade official said Wednesday his country could not accept a potential proposal from the United States to revise provisions on automobile trade in a bilateral free trade agreement as the two sides are set to renegotiate the deal.
"Renegotiation of auto provisions won't happen," Lee Hye-min, South Korea's deputy chief negotiator in free trade talks with the U.S., told SBS radio. "The renegotiation would only clarify some language in the labor and environment provisions."
South Korea and the U.S. reached the landmark deal in early April after 10 months of tough negotiations, but officials from both sides have indicated Washington needs to reflect tougher labor and environment provisions to improve the chances of getting approval from the Democratic-led U.S. Congress.
The deal, expected to be signed on June 30, still requires ratification by the legislatures of both countries.
Besides the issues of labor and environment, local newspapers reported, citing unidentified officials, that the U.S. may ask South Korea to revise provisions on auto trade during the upcoming renegotiation as the majority of Democratic lawmakers criticized the U.S. administration for failing to sufficiently open up Korea's auto market.
Last week, Democratic Senator Hillary Rodham Clinton, one of serious contenders for her party's presidential nomination, said she would oppose ratification of the trade deal with South Korea, saying it will hurt U.S. auto industry among others.
"If the U.S. requests South Korea to revise auto provisions, it would break the balance of current negotiation results," Lee said.
South Korean officials have opened the door for renegotiation, saying they would get more in exchange for adding tougher labor and environment provisions to the agreement.
On Tuesday, Lee added in a lecture for business executives that the U.S. government will "soon" make an official proposal to renegotiate the free trade deal.
Studies suggest that if the deal comes into force, it could increase two-way trade, already at US$79 billion a year, by as much as 20 percent.
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