South Korea, U.S. hold last-gasp talks on trade deal
SEOUL (Reuters) - South Korea said on Monday it will stand firm against U.S. demands as envoys sought last-minute compromises in fractious sectors to meet an end-month deadline for what could be the biggest U.S. trade deal in 15 years.
Negotiators have said they can reach a bilateral deal, which studies say could add $20 billion to their annual $71.5 billion in bilateral trade, before the expiry of a White House authority to negotiate pacts Congress can reject but not amend.
South Korean Trade Minister Kim Hyun-chong and Deputy U.S. Trade Representative Karan Bhatia are heading what is expected to be week-long talks to overcome differences in disputed sectors such as agriculture, automobiles and pharmaceuticals.
South Korea's chief negotiator to the talks Kim Jong-hoon cautioned Seoul would not easily bend to U.S. demands, saying both sides remained apart after the first day.
"We won't reach an unreasonable compromise, bounded by the end-March deadline," he told a media briefing, according to Yonhap news.
Last week, the two sides failed to reach an agreement during farm trade talks in Seoul, where a separate dispute over a previous deal on U.S. beef imports clouded the discussions.
Tens of thousands of South Koreans took to the streets of Seoul at the weekend to protest a free trade deal, and more rallies are expected throughout the week.
South Korean media has reported that after the senior envoys finish their discussions in Seoul, South Korean President Roh Moo-hyun and President Bush will speak over the telephone to conclude the negotiations.
The Bush administration must notify Congress by the end of March of its intent to sign the pact in order to submit it for approval under a negotiating authority that expires in June.
About 55 percent of South Korean lawmakers believe the trade deal with the United States will be in Seoul's best interest, according to a survey published on Monday by the daily Chosun Ilbo.
U.S. lawmakers have warned that the deal must secure greater access for American cars, rice and beef to win congressional approval.
Automobiles were the largest sector of their two-way trade in 2005. South Korea exported 709,000 vehicles and imported 5,500. Nearly a third of South Korea's car exports go to the United States, the Korea International Trade Association said.
The largest sector for U.S. exports was semiconductors, valued at $5.7 billion, followed by airplane parts.
The deal could be the biggest U.S. free trade pact since the North America Free Trade Agreement of 1992. South Korea is the seventh-largest trading partner of the United States, while the United States is Seoul's third-largest trade partner.
(With additional reporting by Kim Yeon-hee and Jessica Kim)
