YONHAP NEWS

(2nd LD) Obama hopes to address concerns over Korea FTA for possible ratification next year

By Hwang Doo-hyong
WASHINGTON, Nov. 18 (Yonhap) -- U.S. President Barack Obama expressed hope Wednesday that the U.S. will be able to work out details with the pending free trade agreement with South Korea so he can submit it to Congress for ratification next year.

"The question is whether we can get it done in the beginning of 2010, whether we can get it done at the end of 2010. There's still some details that need to be worked out," Obama said in an interview with Fox News.

Obama was asked if he thinks congressional passage of the Korea FTA, signed in 2007, could happen next year.

   "We're going to be discussing this with South Korea. I want to get the deal done," Obama said, "Overall I think it's a potential good deal for U.S. exporters. But there's certain sectors of the economy that aren't dealt with as effectively and that's something that I'm going to be talking to President Lee (Myung-bak) about."

   Obama did not elaborate, but he and other U.S. officials have talked about an imbalance in auto trade and restricted shipments of U.S. beef.

   Obama has been under pressure by U.S. trading partners to move ahead with the full implementation of the North American Free Trade Agreement put into force in 1994 and ratify FTAs with South Korea, Colombia and Panama. The KORUS FTA is the largest for the U.S. since NAFTA.

   South Korea's foreign affairs and trade committee of the National Assembly has already approved the pact and the ruling Grand National Party, which has the majority of seats in parliament, is set to bring it to the full Assembly for ratification as soon as Congress moves.

   U.S. trade officials have said they want to come up with side agreements to address the outstanding issues without revising the text of the deal.

   Democrats in Congress, however, fear a backlash from trade unions, their political base, concerned about possible job cuts amid the worst recession in decades.

   Proponents say the pact will help boost the struggling U.S. economy.

   Voctor Cha, the Korea chair at the Washington-based Center for Strategic and International Studies, said, "The primary issue appears to be the auto sector, but most other sectors, including manufacturing and services, do well by the agreement. Nonpartisan expert studies estimate that the FTA would lead to increased exports of American goods and services to Korea, creating as many as 240,000 new jobs in the United States."

   Michael Froman, deputy national security adviser, said Saturday that Obama will "address the outstanding issues" and discuss "the timetable" for ratification of the FTA with South Korean President Lee Myung-bak while in Seoul Thursday. Obama flew into Seoul Wednesday on the last leg of his four-nation Asian tour.

   While meeting with Lee in June, Obama agreed to make efforts to "chart a way forward," adding he will seek the appropriate "political timing" for submitting the FTA to Congress "once we have resolved some of the substantive issues."

   Jeffrey Bader, senior director for East Asian affairs at the National Security Council, also said last week, "We want to ensure that the Korea FTA does provide access for U.S. automobiles to the Korean market. But the timing of when this can be done and what is politically seizable are very political."

   South Korea's U.S. Ambassador Han Duck-soo last month called on Congress to approve the deal by next summer, emphasizing that failure to do so could push ratification to after 2011 because of congressional elections next November.

   The U.S. Chamber of Commerce last week said that "the U.S. could suffer a net loss of nearly 350,000 jobs, US$35 billion in export sales, and $40 billion in GDP if it fails to implement its pending trade agreement with Korea while the European Union moves ahead with its own agreement with Korea."

   Obama said Sunday he is aware of the brisk competition.

   "To stand still is to lose ground, because other nations are already pursuing agreements with this region that will give their exports preferred access, agreements that will put our workers and our businesses at a competitive disadvantage," he told the annual Asia Pacific Economic Cooperation forum in Singapore.

   South Korea recently initialed a free trade deal with the European Union, anticipating its implementation in mid-2010, and has ratified a free trade pact with India while it seeks similar agreements with China, Japan, Canada, Australia, the Association of Southeast Asian Nations and several other nations.

   "Seoul is growing impatient with U.S. reluctance to approve an agreement -- especially one widely touted as providing significant economic and geostrategic benefits to both countries," said Bruce Klingner, a senior research fellow at the Heritage Foundation.

   Klingner was pessimistic about the future of the FTA, which U.S. government statistics show will increase U.S. gross domestic product by up to $11 billion annually. Korea is the seventh-biggest trading partner for the U.S.

   "Despite its proclamations of being free-traders, it is increasingly obvious that the Obama administration is willing to sacrifice an important strategic agreement on the altar of auto sector protectionism," he said.

   Cha agreed. "Koreans have very high expectations that Obama will bring some positive news on moving forward with the KORUS. They are likely to be disappointed."

   hdh@yna.co.kr
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