Things "flexible" at negotiations over S Korea-U.S. free trade deal

Last-minute efforts by South Korea and the United States to iron out differences on their two-way trade pact have not to produce a breakthrough yet, South Korea's top trade official said Monday.

South Korean trade minister Kim Jong-hoon and his U.S. counterpart Ron Kirk began in Seoul two-day negotiations aimed at settling their outstanding issues in the trade deal that still awaits legislative approval in both countries.

"Discussions are still underway, and things are still flexible, "Seoul's trade minister told reporters after a seven-hour meeting with his counterpart.

The last-ditch effort comes after South Korean President Lee Myung-bak and his American counterpart, Barak Obama, agreed to reach a final compromise on the trade agreement, originally struck in 2007, before they meet on Thursday on the sidelines of the G-20 summit here.

The two sides held a series of working-level meetings earlier this month but failed to agree on issues including auto trade imbalances and U.S. beef imports, two thorny issues that bogged down all previous attempts to ratify the deal, said to be the largest trade pact for the U.S. since the North American Free Trade Agreement (NAFTA).

U.S. congressmen have been reportedly calling for renegotiation of the trade agreement, echoing concerns of the U.S. auto industry over South Korea's apparently strict regulations that might impede American car sales here.

"The U.S. side showed great interest in South Korea's automotive safety standards and environmental standards regarding fuel efficiency and greenhouse gas emissions," Kim said. "They expressed concern that such standards might become a barrier blocking their market entry,"he said, adding that American vehicles currently account for only one percent of the total domestic market share.

South Korea is planning to require automakers to have a fuel efficiency of 16.7 km per liter and bring down greenhouse gas emissions to 140 grams per km, starting 2015. Calling it a " legitimate policy goal" of the South Korean government, Kim said the challenge for him will be to seek common ground between carrying out the domestic policy and easing a market barrier.

U.S. beef imports are another key bone of contention, as the U. S. side reportedly asked South Korea to further open up its market and allow U.S. beef produced from cattle older than 30 months old into the country -- something South Korea has stayed away from for fear of mad cow disease.

President Lee's move in 2008 to allow imports of all cuts of U. S. beef and other beef products from all ages of cattle touched off massive street protests for months, with the public furious at perceived safety concerns.

"It is true that the U.S. side has expressed much interest in the beef issue, and they are well aware that sales of American beef here has been on the rise,"trade minister Kim said, adding that the high national attention on the issue is well noted.

"It is our stance that the beef issue is unrelated to the free trade agreement," he said, adding"we have not discussed the beef issues yet."

The trade officials do not feel pressured by their leaders' pledge to finish negotiations on the deal before their meeting in three days, Kim said."The substance of the negotiations matter more than the time limit," he said.
(Source:xinhua)