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South Korea trade talks says deal to be finalized
Friday, January 19, 2007 11:16 [IST]

Seoul: The chief U. S. Negotiator in free trade talks with South Korea expressed optimism Friday that the two countries can achieve their goal of an ambitious deal, though acknowledged key hurdles remain amid a looming deadline. 

"There are tough issues on the table in this negotiation, no doubt about it, Assistant U. S. Trade Representative Wendy Cutler told a press conference on the final day of the sixth round of talks," he said.

 "My view coming out of here this week is that this deal can be done. While Cutler cited 'important progress' during the five days of negotiations, she said more is needed in key sectors important to Washington such as automobiles and pharmaceuticals," he said.

While saying she had 'no breakthroughs' to announce, Cutler cautioned against undue pessimism, saying that those usually come at the very end of the negotiating process. And that is fast approaching.
 

 The two sides need to wrap up a deal by the end of March if they want to take advantage of President George W. Bush s special trade authority, which makes it easier to get trade agreements through Congress.

Cutler also said that the two countries will hold a seventh round of talks next month in the United States, though said she was unsure if further rounds will be needed. She added, however, that more intense informal contacts by negotiators _ and even higher ranking officials will be needed.

 
"Both sides realize how much there is at stake," Cutler said.
 

The talks, which began in June, are aimed at slashing tariffs and other barriers on a wide range of goods and services. The two nations already do US 72 billion (�56 billion) worth of business a year.

If successful, a deal would be the biggest for the U. S. since the North American Free Trade Agreement in 1993. South Korea, the world s 10th largest economy, is the seventh biggest trading partner for the United States.

The effort has gone into overtime after negotiators failed to achieve an initial, albeit informal, goal of wrapping up a deal by the end of last year.

They remain apart on a range of issues. South Korea, for example, wants the U. S. To soften antidumping laws and says it will not include its rice market in the deal.

Though Bush s so called fast track negotiating powers meaning he can submit a deal to Congress for a straight yes no vote with no amendments  expires on July 1,various administrative and legal requirements mean a deal needs to be wrapped up 90 days before that.

Lawmakers, however, may not vote on the deal for months. South Korea s National Assembly would also have to ratify it.

Earlier this month, Cutler and her South Korean counterpart, Ambassador Kim Jong hoon, met in Hawaii.

They were joined by Kim s boss, South Korean Trade Minister Kim Hyun chong, and Deputy U. S. Trade Representative Karan Bhatia.

Cutler said to expect more such meetings and contacts in coming weeks as the effort to clinch a deal intensifies. She emphasized, however, that nothing will be sacrificed in order just to conclude an agreement.
 

 "We don t do low quality FTAs, she told reporters from foreign news agencies earlier Friday. We do high quality FTAs. The talks have drawn fierce resistance from South Korean laborers, trade unions, farmers and even film industry workers who all say an agreement threatens their livelihoods," he said.

While some protests have been violent in past rounds held in South Korea, the number of demonstrators has dwindled. Protests this week were mostly small with only a few minor scuffles.

The Seoul Metropolitan Police Agency has deployed 15,000 riot police on the streets of the capital this week to protect negotiators and make sure demonstrations stay peaceful.

The largest demonstration this week numbered about 3,000 people, according to police.

AP
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