SEOUL, May 16: A senior South Korean official warned on Wednesday that free trade deal with the United States could collapse if Washington “unilaterally” urges Seoul to revise it to reflect new US policy guidelines.
“If the US demands South Korea renegotiate to reflect its unilateral view, we could break down the agreement,” Kim Jong-Hoon, South Korea's chief negotiator in the talks, told Yonhap news agency in an interview.
“We couldn't one-sidedly accept a request to renegotiate the agreement that already reflects the balance of interests,” Kim said.
Foreign Minister Song Min-Soon separately ruled out changes to the accord struck last month after 10 months of tough negotiations.
“The government has a firm stance that it is not an issue to be renegotiated,” he told a weekly briefing.
Song said Washington had not yet proposed any changes. But US ambassador Alexander Vershbow told a forum Tuesday that work should be done to adapt the deal to reflect the new US trade policy.
South Korea and the United States, whose two-way trade reached 74 billion dollars in 2006, reached the agreement in early April. It is awaiting legislative approval in Seoul and Washington.
Last week Congress and the White House agreed a bipartisan deal that sets social and environmental standards for free-trade agreements.
It would require pending pacts to include five core International Labour Organisation standards, and also laws to implement obligations under seven multilateral environmental agreements.
The deal was the biggest for the US since the North American Free Trade Agreement in 1993. Studies show it could add about $15 billion to annual two-way trade.
Exports account for more than 70 per cent of South Korea's gross domestic product and the government has been pushing aggressively for deals. Last week it began talks with the European Union.
Seoul has FTAs in operation with Chile and Singapore and a pact with the Association of Southeast Asian Nations, excluding Thailand, will take effect on June 1.
Seoul is reportedly close to a pact with Canada and in June is set to begin a second feasibility study with China.
Meanwhile, South Korea and Australia will begin a joint study this year on a possible free trade agreement, a senior official said Wednesday.
“The study by private research institutions from both countries will be conducted this year,” Deputy Trade Minister Kim Han-Soo said in a statement to a meeting of business leaders.—AFP
