US-South Korea International Trade Deal Faces Hurdles in Congress

The United States and South Korea finally reached a free trade agreement (FTA) after months of negotiations. It must be noted that the two countries struggled to settle their differences and come up with an international trade deal before the deadline, which is the expiration of President George W. Bush's trade promotion authority (TPA). Although the TPA is due to end in July, the two countries needed to close an international trade pact 90 days before the expiration. But despite the success of trade negotiators from both sides, the proposed FTA is expected to face certain hurdles in the US Congress. There are doubts whether the new international trade agreement would be approved by the US Congress, which is currently controlled by the Democrats. According to analysts, South Korea's existing trade policies, as well as criticisms against current US trade rules, are among the major factors that would affect the decision of the Congress regarding the proposed FTA. It must be noted that some legislators have already threatened to block the FTA unless South Korea resolves its beef dispute with the US. Although beef does not form part of the international trade agreement, it has been one of the key issues that affected negotiations between South Korea and the US. It must be noted that South Korea used to be among the biggest markets for US beef products. However, the Asian nation imposed a ban on US beef imports in 2003 due to the incidence of mad cow disease. South Korea has already lifted the ban last year. Needles to say, the country remains strict in accepting beef shipments from the US. In fact, South Korea rejected initial beef shipments from the US due to their failure to comply with safety standards. The exclusion of rice from the international trade deal is also expected to affect the decision of the US Congress over the proposed FTA. It must be noted that the US initially wanted to gain a greater access into South Korea's agricultural market. But the Asian nation has insisted to exclude rice from the FTA in order to protect its farmers. Until now, the US-South Korea international trade pact continues to face the opposition of many South Korean farmers, who fear that the FTA may gravely impact their country's farm industry. The newly signed trade deal is the biggest FTA to be signed by the US since the NAFTA (North American Free Trade Agreement) in 1993. Source : http://www.tbc-world.com/