US-S.Korea battle clock, protests over trade deal

SEOUL, Jan 15 (Reuters) South Korean and US negotiators, facing street protests, a history of troubled negotiations and a ticking clock, started a round of talks today to strike a bilateral free trade deal.

The discussions on a free trade agreement between the two with annual trade of about 73 billion dollars a year could be at a make-or-break stage, analysts have said.

The chief US negotiator emerged from the last round in Montana last month calling the situation ''troubling''.

''The time pressure is certainly on people's minds, but we maintain that getting the right agreement is more important than the clock,'' Steve Norton, a spokesman for the US Trade Representative told Reuters in Seoul.

Washington and Seoul have clashed on issues including South Korean barriers to US auto imports and pharmaceuticals and US anti-dumping duties that South Korea believes are often unfairly applied to its products.

Even before the week-long discussions opened in Seoul, there were signs of acrimony.

''As Washington refused to remove or ease its anti-dumping rules, there will be no discussion on autos, medicine and other issues of US concern in the upcoming talks,'' said Han Dongman, a trade ministry spokesman.

The two sides would focus instead on ''less sensitive'' issues such as a tariff phase-out in industrial goods and intellectual property rights, Han said in an e-mail. The top negotiators would hold informal talks on the most contentious issues.

The two sides want to strike a deal early this year before legislation expires on June 30 that allows the White House to negotiate agreements lawmakers can reject but not amend.

The same law requires the White House to notify Congress 90 days before signing any agreement, meaning it needs to have a final deal with Seoul by the end of March.

If South Korea strikes a deal, the increased trade could amount to a net gain of about 11 billion dollars for its economy, according to some studies, and give it a leg up on Asian rivals Japan and China in trading with the world's biggest economy.

The United States stands to see a bigger market for its financial services, information technology and automobiles in South Korea, the world's 11th largest economy in 2005, according to the World Bank.

South Korean farmers, angered at possibly losing government protection under a free trade agreement, are planning to stage rallies protesting against the deal.

A major protest is slated for tomorrow. Thousands of riot police have been mobilised for the talks.

During a round in July 2006, South Koreans armed with metal rods and bamboo poles fought bloody clashes with police in riot gear in protests aimed at upsetting the trade talks.

Reuters AD VP0754