Obama pledges to work with Lee to conclude Korea FTA talks in Seoul: NYT

By Hwang Doo-hyong
WASHINGTON, Nov. 6 (Yonhap) -- U.S. President Barack Obama said Saturday he will
try to conclude talks with South Korean President Lee Myung-bak on the
ratification of a pending free trade agreement (FTA) while in Seoul to attend an
economic summit next week.
"In South Korea, President Lee Myung-bak and I will work to complete a trade pact
that could be worth tens of billions of dollars in increased exports and
thousands of jobs for American workers," Obama said in a contribution to The New
York Times just days ahead of his trip to Seoul for the summit of leaders of 20
leading economies.
Obama, currently on a tour of India in the first leg of a four-nation Asian tour
that will also bring him to Indonesia, South Korea and Japan, said any agreement
"must come with the right terms."
"That's why we'll be looking to resolve outstanding issues on behalf of American
exporters, including American automakers and workers," he said. "If we can, we'll
be able to complete an agreement that supports jobs and prosperity in America."
Obama's remarks came amid last-minute efforts by trade officials of the sides to
narrow differences over lopsided auto trade and restricted shipments of beef,
which have stalled the pact's congressional approval for over three years after
its signing under the George Bush administration in 2007.
Working-level officials of the two sides got together in Seoul for two days until
Friday, and U.S. Trade Representative Ron Kirk is to meet with South Korean Trade
Minister Kim Jong-hoon Monday.
Obama spoke with Lee over the phone Monday and hoped to "use the next week to
make progress toward an agreement," saying, "If we can reach a satisfactory
agreement on the key issues for American workers, we will have a deal."
Obama ordered Kirk in June to conclude talks with Kim on the outstanding issues
before he flies to Seoul so he can present the deal to Congress early next year.
Free trade is seen as one of the potential areas of close cooperation between
Obama and congressional Republicans, who regained control of the House in
Tuesday's midterm elections, jeopardizing Obama's chances for re-election in 2012
amid the prolonged economic slump and near double-digit unemployment.
Democrats, many of whom disfavor the trade deal for fear of possible job cuts,
retained a slim Senate majority in the elections overshadowed by the slumping
economy, federal budget and trade deficits, health care, taxes and other domestic
issues.
Obama has set an ambitious goal of doubling exports within five years as a means
of reviving the sagging economy hit by the worst recession in decades.
The U.S. president fears any delay in the Korea FTA's ratification will lead to
American products losing ground in South Korea, the seventh biggest export market
for the U.S.
"Other nations like Canada and members of the European Union are pursuing trade
pacts with South Korea, and American businesses are losing opportunities to sell
their products in this growing market," he said. "We used to be the top exporter
to South Korea; now we are in fourth place and have seen our share of Korea's
imports drop in half over the last decade."
South Korea recently signed an agreement with the European Union for the
provisional implementation of a bilateral free trade deal from July.
Seoul also effectuated free trade deals with India and Chile, and is proceeding
with similar agreements with China, Japan, the Association of Southeast Asian
Nations, Australia and Canada.
China in 2004 replaced the U.S. as South Korea's biggest trading partner with
China's two-way trade accounting for 20.5 percent of South Korea's total trade
volume last year, compared with 9.7 percent for the United States, according to
statistics from the International Monetary Fund.
U.S. government statistics show the implementation of the FTA with South Korea
will create 240,000 jobs and increase annual two-way trade by more than $20
billion, up from $83 billion.
The U.S. goods trade deficit with South Korea was $10.6 billion in 2009, down
$2.8 billion from 2008, according to United States Trade Representative (USTR)
figures.
South Korea says its trade surplus with the U.S. is far less than those enjoyed
by China or Japan, and that the U.S. deficit would be easily neutralized after
factoring in the U.S. surplus with South Korea in finance.
Obama also hoped that the Seoul G-20 summit will help address U.S. trade
imbalances with China.
"Last year, the nations of the G-20 worked together to halt the spread of the
worst economic crisis since the 1930s," he said. "This year, our top priority is
achieving strong, sustainable and balanced growth. This will require cooperation
and responsibility from all nations, those with emerging economies and those with
advanced economies; those running a deficit and those running a surplus."
hdh@yna.co.kr
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