US-SKorea battle clock, protests over trade deal

Seoul, Jan 15: South Korean and US negotiators, facing streetprotests, 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 withannual trade of about 73 billion dollars a year could be at amake-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 wemaintain that getting the right agreement is more important than theclock,'' Steve Norton, a spokesman for the US Trade Representative toldReuters in Seoul.

Washington and Seoul have clashed on issues including South Koreanbarriers to US auto imports and pharmaceuticals and US anti-dumpingduties that South Korea believes are often unfairly applied to itsproducts.

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 USconcern in the upcoming talks,'' said Han Dongman, a trade ministryspokesman.

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

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

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

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

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

South Korean farmers, angered at possibly losing governmentprotection under a free trade agreement, are planning to stage ralliesprotesting 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 rodsand bamboo poles fought bloody clashes with police in riot gear inprotests aimed at upsetting the trade talks.

Reuters>