KORUS FTA agreement

U.S. and South Korean negotiators reached agreement on April 1 (in the U.S.), as late as they possibly could, and still notify the U.S. Congress in time to take advantage of the existing U.S. trade promotion authority: S. Korea, U.S. reach free trade agreement (Yonhap News, April 2 in Korea); South Korea, U.S. Reach Free Trade Deal (AP, April 1 in the U.S.).

Evan Ramstad describes how it ended for the Wall Street Journal (U.S.-Korea Trade Deal Still Faces Hurdles (April 3):

The two countries reached the deal just before midnight, Eastern Time in the U.S., in time to reach Congress ahead of a deadline tied to the expiration of Mr. Bush's trade-negotiating powers.

With fewer than 80 minutes remaining to the U.S. deadline, South Korea Trade Minister Kim Hyun Chong left the Grand Hyatt Hotel in Seoul, where the negotiations were taking place, to meet Mr. Roh and several other cabinet ministers to discuss final terms. He called Mr. Bhatia on his way back to the hotel -- 22 minutes before the deadline -- to say the countries had a deal.

A complete draft of the deal will take a week or two, after which Messrs. Bush and Roh will have to win approval for the deal from lawmakers.

Here's a somewhat earlier Ramstad story (U.S., South Korea Reach Trade Pact, Wall Street Journal, April 2 in U.S.):

The two sides compromised on the food dispute that threatened to scuttle the deal in the last days of talks. The U.S. wanted South Korea to end a three-year boycott on U.S. beef and accept imports of rice. In the end, South Korea agreed to resume purchases of U.S. beef and the U.S. dropped its insistence on rice.

To settle another major dispute, South Korea agreed to drop tariffs and other restrictions on imported cars. Those penalties have created one of the most lopsided car markets in the world: just 3.5% of cars sold last year in Korea were foreign-made, compared with 37% in the U.S. As part of the deal, the U.S. will also drop a much smaller tariff on Korean cars.

This concludes a final, intense, round of negotiations, conducted since Monday, March 26 in Seoul.  This weekend has seen repeated revisions of the "final" deadline.  The Hankyoreh reports on the deadline extensions: Seoul allows U.S. to push FTA deadline back twice: reports. (April 2 in Korea)  Yonhap News supplied a chronology of the entire, 10 month, negotiation: Chronology of major events in S. Korea-U.S. FTA negotiations (April 2 in Korea).  Here's a human interest piece on the last week: Final 4 in the FTA had help behind the scenes (Hwang Young-jin , JoongAng Daily, Apr 4)

Here's the notification the President had to send to Congress before April 2, so that the existing trade promotion authority could be used.  It's not a complete text of the agreement: Text of a Letter from the President to the Speaker of the House of Representatives and the President of the Senate (April 1)

Park Sang-soo reports that Korean exports to the U.S. will increase, "with the automobile and textile sectors benefiting the most from the deal, experts and reports said Monday.": U.S. FTA to boost S. Korea's automobile, textile exports (Yonhap News, April 2 in Korea).  Korean business groups are optimistic: Business groups hail S. Korea-U.S. FTA deal (Yonhap News, april 2 in Korea).

Kim Hyung-jin discusses the prospects for the agreement in the Korean Parliament: FTA expected to face tough review in S. Korean parliament (Yonhap News, April 2 - in Korea)

Anna Fifield in Seoul and Eoin Callan reported for the Financial Times: US and S Korea reach landmark trade deal (April 2).  They report on the Democratic reaction:

Leading US Democrats immediately condemned the agreement - in a sign the deal will face a difficult passage through Congress.

Michigan Senator Debbie Stabenow said: “I will do everything in my power to defeat this agreement and ensure that any future fast-track authority includes provisions guaranteeing that American businesses and workers can get a fair deal.”

The Senator said that “by hastily pushing through this deal with South Korea before the fast track deadline” the Bush administration had made concessions on US vehcile exports that would “hurt our automobile industry”.

Senator Max Baucus of Montana, Chairman of the crucial Senate Finance Committee, says the deal isn't going anywhere unless the beef issue is addressed (beef is important to Montana):

"I will oppose the Korea free trade agreement, and in fact I will not allow it to move through the Senate, unless Korea completely lifts its ban on U.S. beef."...

"I have made it clear, to the administration and to the Korean government, from the start of these talks that there can be no trade agreement without full access to the Korean market for all of Montana's beef exports, boneless and bone-in, and regardless of age," the senator said.

"Both the administration and the Korean government are about to learn just how serious I am about opening Korea's market to U.S. beef as part of this agreement," he said.

U.S. senator warns he will oppose S.Korea-U.S. FTA until beef issue is resolved (Yonhap News, April 2 in Korea)

The Taiwanese Minister of Economic Affairs expects the deal to hurt Taiwan: U.S.-Korea FTA to hurt Taiwan: MOEA (China Post, April 2 in Taiwan)

Revised April 2

Comments

[r4 revolution gold]

Hi,
Really in addition to Korea being a key market for U.S. exports, the KORUS FTA has strategic importance for Intel and others in the U.S. semiconductor industry as a means for furthering trade liberalization initiatives in Asia.