US faced hard decision on rice in Korea talks: USTR

Washington, Apr 12: South Korea flatly refused to open its market to more rice as part of a proposed free-trade agreement with the United States, even if that meant killing the pact, the lead US negotiator said.

''We were basically faced with a very tough decision: to walk away from a very good agreement without rice or to go ahead and conclude the agreement recognizing that one product would be excluded,'' Assistant US Trade Representative Wendy Cutler said in remarks at the Heritage Foundation.

The United States and South Korea wrapped up negotiations in early April and are expected to sign the agreement by June 30.

US farm groups and many lawmakers have criticized the Bush administration for excluding rice from the largest US free-trade agreement in 15 years.

Cutler said Korean negotiators made clear ''they weren't going to put rice in the agreement, and if that meant we wouldn't have an agreement, so be it.'' South Korea's opposition to further opening its rice market stems from the important place rice holds in many Asian cultures, including Japan, which many US business groups eye as a future US free-trade partner.

''That said, I would just like to emphasize this is in no way a precedent for excluding rice in the future FTAs that the United States will enter into,'' Cutler said.

US rice producers probably do not have enough political clout to stop Congress from approving the agreement, but the pact faces other opponents.

Many farm-state lawmakers have pledged to vote against the agreement unless South Korea fully reopens its market to American beef an issue dating back to the 2003 discovery of mad cow disease in the United States.

''We have made it clear to Korea, and we believe Korea understands, that this agreement is not going to be ratified by our Congress without a full reopening of the Korean beef market,'' Cutler said.

Michigan Democrats have also come out strongly against the agreement, which they fear will open the US market to more Korean cars without providing good opportunity for US automakers to increase sales in South Korea.

Cutler said the agreement addresses Korea's auto barriers and provides a mechanism for taking back US tariff concessions if US automakers do not get expected increased market access in the South Korean market.

Reuters