Korea, US at odds on two-thirds of free-trade agenda
Chosunilbo, Korea
Korea, U.S. at Odds on Two-Thirds of Free-Trade Agenda
8 June 2006
Seoul and Washington have failed to narrow their differences on some 60 percent of items on the agenda at their first round of free-trade talks in Washington. The talks started Monday.
The two sides were unable to come up with a common formula in agriculture and sanitary and phytosanitary issues, and there is tough going ahead when the issues come up again in the next round. The two sides lay down their agreements — as well as areas where they cannot agree ? point by point in a consolidated text.
“The consolidate text will show agreement on some 40 percent of the issues discussed,” Korea’s top negotiator Kim Jong-hoon told reporters after the third day of talks Wednesday,
Divergent viewpoints will be recorded for the rest and carried over into the next round in Seoul in July.
Bones of Contention
The two sides failed to agree on agriculture, sanitary and phytosanitary issues, goods produced in the inter-Korean Kaesong Industrial Complex, as well as textiles, cars and pharmaceuticals.
The crux in the agricultural sector is whether safeguards or emergency import restrictions can be maintained. Korea wants them to ensure minimal protection for its agricultural industry, but the U.S. has made clear it wants all restrictions scrapped.
Washington is also rejecting Korean demands to include goods from the Kaesong Complex in the North. But Washington, which is engaged in a drawn-out standoff with Pyongyang, insists the free-trade agreement will be strictly between it and South Korea. Meanwhile, Seoul is pushing for lower U.S. tariffs on textiles but has failed to get a clear answer from the U.S.
The U.S, also wants a permanent committee to consult on trade so sanitary and phytosanitary issues do not hamper the sector. Korea sees no need for such a committee.
Expectations
Washington wants Korea to base its car tax on price or fuel efficiency, not on engine displacement, a move it hopes would boost sales of the big gas-guzzling cars made in the U.S. But Seoul says FTA talks are not the place to talk about tax matters.
When the U.S. raised the issue of increasing prices of new U.S.-made pharmaceuticals in the Korean market, Korea merely promised a “comprehensive review” of what impact that would have on its medical system.
Hoewever, a Korean official was upbeat. “Both sides are trying to take the offensive, which is why we are so far apart on many issues, but these conflicts will be resolved smoothly in future negotiations,” the official said. The two countries will start the second round of FTA talks in Seoul on July 10.
