South Korea Plans To Ratify US FTA

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

11 March 2009

South Korea's ruling party has expressed its intention to begin ratifying the pending Free Trade Agreement (FTA) with the United States, despite its being stalled States-side.

The FTA was signed in 2007, but ratification has been delayed, after both President Obama and the US trade envoy-designate Ron Kirk lodged opposition to the specifics of the agreement.

Upon becoming President earlier this year, Mr Obama expressed his concern for some of the pending FTAs left in place by his predecessor, explaining:

"The Bush administration has left a legacy of numerous pending agreements and negotiations. We will conduct extensive outreach and discourse with the public on whether these agreements appropriately advance the interests of the United States and our trading partners."

Reiterating the views of the President, Mr Kirk has called this month for the two countries to renegotiate the terms of the FTA, citing its current state as "flawed" and one which will do little to balance out the trade differences between the two countries - particularly where Korea's auto industry is concerned.

Recommended