South Korean trade chief optimistic on US talks

SEOUL, South Korea (AP) — South Korea's trade minister expressed optimism that talks Tuesday with his U.S. counterpart could make progress on a stalled free trade deal ahead of a meeting next month of the two country's leaders.

Key security allies for decades, Seoul and Washington negotiated a landmark deal to slash tariffs and other barriers to trade in April 2007 and signed it three months later.

Changes in government in both capitals, the global economic slump and demands by the United States that South Korea make concessions on trade in autos and beef have left the agreement unratified by legislators.

Seeking a breakthrough, President Barack Obama and his South Korean counterpart Lee Myung-bak vowed in June to try and resolve differences by the time they meet at the Group of 20 summit in Seoul, which takes place Nov. 11-12.

South Korean Trade Minister Kim Jong-hoon, who led South Korean negotiators over the 10 months of arduous talks it took to clinch the initial deal, was scheduled to meet U.S Trade Representative Ron Kirk in San Francisco on Tuesday.

"I think it will go well," Kim told reporters as he left for the airport to fly to the United States.

Kim said it would be his first meeting with Kirk since Obama and Lee met in June. He added that the San Francisco talks would be a half-day meeting and others could follow. The veteran trade diplomat also said that "everything is to be discussed," though provided no specifics.

The U.S. says that the deal cannot go forward without addressing South Korea's overwhelming surplus in auto trade and a further loosening of restrictions on imports of American beef. Seoul has resisted any formal renegotiation of the deal, but has said it is willing to discuss U.S. concerns.

Kim spoke after giving a speech to European business executives in Seoul, where he trumpeted the benefits of a major free trade deal that South Korea and the European Union signed earlier this month in Brussels. The agreement is expected to come into force July 1, 2011, pending approval by the South Korean and European parliaments.

"The European Union will have secured a solid beachhead in (the) Korean market that is relatively small but vibrant and from where you can expand into the larger market in Asia," Kim told the executives.

Despite starting their negotiations a month after those between the U.S. and South Korea concluded, Seoul and Brussels have made up for lost ground and could see their deal take effect sooner.

The 27-member European Union is South Korea's second-largest trading partner after China. The EU is the largest foreign investor in the Northeast Asian country.

Obama said in June that he wanted the deal with Seoul wrapped up so he can submit it to Congress for approval within a "few months" after his visit to Seoul in November. South Korea's National Assembly must also ratify it.

Bilateral trade between South Korea and the U.S. totaled $66.7 billion in 2009, down sharply from $84.7 billion in 2008 as global commerce suffered during the economic downturn. The U.S. ranked as South Korea's fourth-largest trading partner behind China, the EU and Japan.

The top U.S. diplomat for East Asia said Monday in Washington that the talks on the deal must succeed.

"We cannot afford to fail," U.S. Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell said in a speech. "It is absolutely essential that we are successful with a Korea free trade agreement."