South Korea and the U.S. on Monday decided not to impose tariffs on digital songs and movies, the first formal agreement in their drawn-out free trade agreement talks, a South Korean official said.
"Though it's a small area, the first agreement reflects both sides' willingness to move forward toward an overall agreement," said Lee Hye-min, the No. 2 South Korean negotiator in bilateral free trade agreement talks under way in Washington.
The agreement came in just one of the 19 categories covered in this week's round of talks in Washington which opened on Sunday.
The talks were launched in June last year to forge a free trade agreement between the two economies.
South Korea, the world's 11th largest economy, is the United States' seventh largest trading partner, with two-day trade reaching US$74 billion in 2006.
The two sides have already reported big progress in most less sensitive areas, but admit that a real breakthrough would not come without agreement in three most sensitive areas -- anti-dumping remedies, cars and pharmaceuticals.
The two top negotiators -- Kim Jong-hoon from South Korea and Wendy Cutler from the U.S. -- were trying to find a compromise on the three most sensitive issues outside the conference room, South Korean official said.
Before leaving Seoul, the South Koreans said they would try to reach a "package" deal with the U.S. on those three issues. South Korea is seeking to ease U.S. anti-dumping rules, while the U.S.
is interested in changing South Korean tax and regulatory systems that may restrict U.S.auto and pharmaceutical shipments.
"As of today, it's difficult to say whether both sides make significant progress in informal meetings at the chief negotiator level," Lee said, commenting on the three pending sectors.
"We need more time to see the two sides will make a breakthrough or not during the seventh round," he said.
South Korean officials believe that the U.S. has often used its anti-dumping tariffs to curtail semiconductor and other high-tech South Korean goods.
U.S. officials have indicted that they are willing to address the South Korean concern without changing their laws, a suggestion that can elicit concessions from South Korea on cars and pharmaceuticals.
This week's round, the seventh since June last year, comes as the clock is ticking toward an April 2 deadline set under U.S. President George W. Bush's "fast-track" trade promotion authority which expires on July 1. The authority requires a 90-day congressional review for a simple yea-or-nay vote without amendments.
A free trade agreement with the U.S., if adopted, will also require approval by South Korea's one-house National Assembly, where supporters outnumber opponents.
Outside the talks venue, a Washington hotel, some 30 South Korean activists held a noisy protest against the negotiations by beating gongs and drums. Police presence was minimal.
Washington, Feb. 12 (Yonhap News)
S. Korea, U.S. reach first agreement in FTA talks |
