India agreement approved, U.S. FTA still pending

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India agreement approved, U.S. FTA still pending

Korea should “level the playing field” by removing barriers to U.S. auto sales in order to clear the way for a pending free-trade agreement, U.S. Trade Representative Ron Kirk said.

Kirk, in a speech on Thursday at the U.S. Chamber of Commerce, said his office is developing proposals for Korea to consider. Ford Motor Co. is among U.S. automakers calling for changes to Korean regulations they say discriminate against imports. “Our market is open to Korean autos,” Kirk said. “All we are asking for is the same for America’s auto industry.”

U.S. automakers sold fewer than 7,000 vehicles in Korea last year, less than 1 percent of the market. By contrast, Korean carmakers Hyundai Motor Co. and Kia Motors Corp. sold more than 53,000 vehicles in the U.S. last month alone.

President Barack Obama’s visit to Korea during a trip to Asia next week gives him an opportunity to push for the trade agreement, some lawmakers and business groups have said. Kirk didn’t describe the auto proposals, or say if they would require renegotiating the pact, which has been awaiting congressional approval since 2007.

Korea yesterday repeated its stance that the deal should be ratified as is. Lee Tae-ho, director-general of FTA policy for the Ministry of Foreign Affairs and Trade, called the deal a “balanced text” that reflects U.S. concerns.

The two nations had $83 billion in two-way commerce last year, making the so-called Korus accord the biggest for the U.S. since the North American Free Trade Agreement in 1994.

“Preparing Korus for congressional consideration would continue our partnership with a democratic ally that has a strong record on labor rights and environmental protection,” a group of 70 lawmakers said in a letter written by Rep. Adam Smith to be sent to Obama yesterday. Bloomberg
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