Posted on : Jan.15,2007 16:07 KST Modified on : Jan.16,2007 16:16 KST

The top U.S. trade negotiator voiced optimism on Monday about a proposed free trade agreement with South Korea, saying that "important" progress has been made toward the goal.

"I remain encouraged and optimistic that we can do this under the TPA deadline," Wendy Cutler said, referring to U.S. President George Bush's "fast-track" trade promotion authority which expires on July 1.

Under Bush's authority, U.S. negotiators have until April 2 to submit a deal for a mandatory 90-day review by Congress before voting for or against a deal without amendments.

The deal also requires ratification by South Korea's parliament but the U.S. time restriction has raised concern that the agreement could be clinched in time.


Cutler, who also serves as deputy chief of the U.S. Trade Representative, said "important" progress made so far has convinced her to be optimistic about the deal. She said, however, that "a lot of work" still has to be done.

"Our remaining time for this negotiations is short if we are taking advantage of a window of opportunity provided by the current trade promotion authority," she said. "Our challenges are real, but they are not insurmountable." Prior to this round of talks in Seoul, the sixth since June last year, which opened on Monday, the two countries decided not to officially discuss three key pending issues -- anti-dumping rules, autos and medicine.

But Cutler said that that decision would have little impact on the talks, citing that those pending issues will be tackled at informal talks involving her and her South Korean counterpart, Kim Jong-hoon.

"The U.S. is prepared to make progress in all of these three issues at the chief negotiator level," Cutler told reporters after ending the morning session.

Cutler also demanded a full opening of South Korea's beef market, warning that the issue is "critical" in reaching a free trade deal with South Korea.

"We will figure out the speediest way, taking into consideration international standards in this area," she said, commenting on South Korea's strict quarantine rules that have virtually blocked U.S. beef imports.

Lifting a three-year ban prompted by the outbreak of a mad cow case in the U.S., South Korea in October agreed to resume only boneless U.S. beef. It has since turned back three shipments totaling 22.3 tons after bone chips were found in the meat.

The beef issue is extremely sensitive for South Koreans, because scientists say mad cow disease can be transmitted to humans by bone marrow of cows infected with the disease.

Before the beef import ban was announced in 2003, South Korea was the third largest U.S. beef market with annual purchases reaching US$850 million.

Outside the meeting site, a hotel, 100 farmers and students briefly clashed with riot police blocking their march.

There were no reports of arrests or injuries.

Earlier, nine Korean leftist lawmakers from the minor opposition Democratic Labor Party confronted 2,000 riot police, as they launched a five-day hunger strike. Nationwide, 50,000 police were deployed. "We are here to protest the FTA because we believe it will devastate the livelihood of low-income people and our nation," Kwon Young-gil, a representative of the group, said. "Already, the government is moving to accept most of the American demands."

After unfurling a large placard that read, "FTA with U.S. will devastate the livelihood of ordinary people," the lawmakers sat down on the cold pavement when blocked by riot police who formed human barriers.

South Korean officials said that during the five-day talks in Seoul, they will focus on "less sensitive" areas such as a phase-out of tariffs on industrial goods, competition and intellectual property rights.

South Korea, Asia's third-largest economy, is Washington's seventh-biggest trading partner. In 2006, the U.S. was South Korea's third-largest market, with two-way trade totaling US$74 billion.

Seoul, Jan. 15 (Yonhap News)


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