SKorean FM Nixes US Trade Negotiations 11/20 05:39

   SEOUL, South Korea (AP) -- South Korea's foreign minister ruled out Friday 
additional negotiations with the United States over a free trade agreement, a 
day after presidents of the two countries vowed cooperation to push the stalled 
deal forward.

   The ambitious accord, signed more than two years ago, has languished in 
political limbo as U.S. officials say it does not adequately address a wide gap 
in auto trade between the two countries that favors South Korea.

   South Korean President Lee Myung-bak said Thursday at a press conference 
with President Barack Obama that his government was willing to discuss the auto 
issue with Washington.

   "If we have an auto problem with the U.S., we should have an opportunity to 
talk again and understand each other," Lee said. It was unclear if that 
included a willingness to renegotiate.

   But Foreign Minister Yu Myung-hwan, speaking in parliament Friday, said that 
Lee's comments did not mean "renegotiation or additional negotiations."

   South Korean officials have consistently ruled out a formal reopening of the 
deal that was signed in June 2007, well before Lee and Obama were elected. The 
agreement requires ratification by legislatures in both countries to take 
effect.

   Ron Kirk, the U.S. trade representative, earlier this month criticized South 
Korea's auto market as not being fully open to U.S. manufacturers and said his 
office was conducting a review of the deal.

   Obama said Thursday in Seoul that he was committed to the agreement and 
officials from both countries were trying to resolve problems.

   Two-way trade between South Korea and the U.S. came to $84.8 billion in 
2008, making Washington South Korea's fourth-biggest trading partner after 
China, the European Union and Japan.

   Figures compiled by auto industry groups in South Korea show the country 
exported nearly 600,000 vehicles to the U.S. last year, while South Koreans 
purchased almost 7,000 vehicles made by American manufacturers.

   South Korea has been aggressively pursuing free-trade agreements as part of 
a strategy to boost its economy and increase export opportunities.

   In effect are agreements with Chile, the 10-member Association of Southeast 
Asian Nations, and the European Free Trade Association, which comprises 
Switzerland, Iceland, Liechtenstein and Norway.

   In addition to the deal with the U.S., South Korea has also concluded 
negotiations with the European Union. And Seoul is negotiating free trade deals 
with 11 countries, including Canada, Mexico, Peru, Australia and New Zealand.


(PH)