US, South Korea trade talks go to the brink
Seoul,
Apr
1:
US
and
South
Korean
negotiators
struggled
today
to
agree
a
major
trade
deal
with
a
deadline
just
hours
away
and
neither
side
daring
to
predict
the
outcome.
They
face
a
2130
hrs
IST
deadline
--
noon
in
Washington
and
1
am
tomorrow
in
Seoul
--
to
reach
what
would
be
the
largest
US
trade
pact
in
15
years.
''This
is
the
day
when
both
sides
put
their
bottom
line
on
the
table
...
we're
down
to
the
wire,''
US
Trade
Representative
spokesman
Stephen
Norton
said
in
Seoul
where
the
final
round
of
talks
have
been
taking
place
for
the
past
week.
But
he
added:
''There's
still
a
very
willing
spirit
(to
conclude
a
deal).''
The
Yonhap
news
agency
quoted
local
officials
as
saying
the
most
contentious
issues
were
agriculture,
including
beef
and
oranges,
autos
and
textiles.
In
the
last
few
days,
US
leaders
have
been
loudly
pressing
their
demands
that
South
Korea
open
its
tightly
protected
market
to
beef
and
autos.
South
Korea
used
to
be
a
major
market
for
US
beef
until
it
was
banned
over
health
concerns.
The
issue
is
not
strictly
part
of
the
negotiations
on
a
free
trade
agreement
but
has
become
closely
linked.
Some
estimates
say
an
agreement
could
add
20
billion
dollars
to
the
already
more
than
70
billion
dollars
two-way
trade
each
year.
Fast
Track
But
the
two
need
to
reach
an
agreement
while
the
White
House
still
has
the
right,
under
fast-track
trade
legislation,
to
negotiate
trade
pacts
that
Congress
may
approve
or
reject
but
cannot
alter.
To
miss
the
deadline
would
be
likely
to
mean
talks
dragging
on
for
years,
unless
the
White
House
was
able
to
persuade
a
reluctant,
Democrat-controlled
Congress
to
extend
the
authority.
Negotiators
had
looked
on
the
verge
of
signing
after
presidents
George
W
Bush
and
Roh
Moo-hyun
agreed
on
Thursday
to
instruct
their
negotiators
to
be
as
flexible
as
possible.
Some
nine
months
of
talks
have
been
shadowed
by
large
and
sometimes
violent
protests
in
South
Korea,
mostly
over
fears
that
its
heavily
subsidised
farmers
could
not
survive
a
flood
of
cheaper
US
farm
products.
Farmers
say
opening
up
their
market
would
cost
them
billions
of
dollars
and
tens
of
thousands
of
jobs.
On
autos,
officials
say
Washington's
demands
to
change
South
Korea's
tax
structure
to
remove
discrimination
against
its
cars
would
have
a
much
wider
impact
and
could
cost
the
government
billions
of
dollars
in
lost
revenue.
The
United
States
also
wants
greater
access
to
South
Korea's
lucrative
financial
services,
including
insurance.
Seoul
is
pressing
Washington
to
change
anti-dumping
laws
it
says
are
unfairly
applied
to
its
products.
Reuters