Obama Sets Korean FTA Target Date

by Mary Swire, Tax-News.com, Hong Kong

30 June 2010

In remarks made after a bilateral meeting with South Korea’s President, Lee Myung-Bak, the United States President, Barack Obama, confirmed his intention to present the US-South Korean free trade agreement (KORUS FTA) to the US Congress.

As there had already been a lengthy negotiation to arrive at the terms of the KORUS FTA, President Obama said that he had “indicated to President Lee that it is time that our United States Trade Representative work very closely with his counterpart from South Korea to make sure that we set a path, a road, so that I can present this FTA to Congress.”

He added, however, that it would be done “in a methodical fashion”. He wants to be sure that all matters have been resolved by the time he visits South Korea in November this year. “And then in the few months that follow that, I intend to present it to Congress,” he confirmed. “It will strengthen our commercial ties and create enormous potential economic benefits and create jobs here in the United States, which is my number one priority.”

In turn, President Lee welcomed President Obama’s “firm, continued commitment towards realizing this very important agreement.” On his part, he also confirmed that both men had “agreed that we will continue to work closely together so that we can talk about the specific ways to move this forward.”

He was appreciative of President Obama’ proposal of “a date for us to look forward to, and we will work towards that date and that objective in the weeks and months ahead.”

Originally signed in 2007, the KORUS FTA has been delayed in the US, particularly by doubts in the US concerning South Korea’s auto industry and its non-tariff barriers. The South Korean agricultural and service sectors have also expresses doubts about its text.

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