US and South Korea Try to Finish International Trade Talks before Deadline

The United States and South Korea are currently in the last round of their FTA (free trade agreement) talks. Both parties are trying to cut an international trade pact before the Bush administration loses its authority to negotiate fast-track trade agreements with other countries. The final round of the FTA negotiations began on Thursday last week. Since the international trade discussions started, the US and South Korea have agreed to improve their anti-trust and customs policies. Needless to say, automobiles and agriculture remain as major issues affecting the progress of the FTA talks between the two countries. Not all South Koreans are in favor of the proposed international trade agreement. Since the two countries started the first round of their FTA talks, many South Koreans have protested against the trade deal. South Koreas, particularly farmers, have feared that the proposed free trade pact might seriously affect their country's agricultural industry. Under the proposed FTA, South Korea wants the United States to immediately remove duties, which are imposed on the former's car exports. It must be noted that automobile industry represented a large percentage of the two-way international trade between the two countries in 2005. At that time, South Korea exported around 709,000 automobiles, while it imported 5,500 cars from the US. Meanwhile, the United States wants South Korea to lift or ease restrictions on the former's beef exports. It must be noted that South Korea used to be one of the biggest markets for US beef products. But the Asian nation imposed a ban on US beef in 2003 due fears on mad cow disease. Although South Korea has already lifted the ban last year, the country remains strict in receiving beef shipments from the US. It must be noted that South Korea rejected initial beef shipments from the US due to their failure to comply with health and safety rules. But the US warned that the Congress might not approve the proposed international trade agreement if South Korea failed to resolve the issue. The TPA (trade promotion authority) of President George W. Bush is due to expire in July this year. But the two countries must reach an international trade pact by the end of this month since the Bush administration must close any trade pact 90 days before the expiration of the TPA. At present, Washington is negotiating with the Congress for the renewal of the TPA, which is also vital to the on-going Doha Development Round of Talks under the World Trade Organization (WTO). International trade between the US and South Korea reached up to $72 billion in 2005. Source : http://www.tbc-world.com