US Reps:US-South Korea Trade Talks Must Resolve Auto Imbalance
November 11 2010 - 11:28AM
Dow Jones News
The failure of the U.S. and South Korea to meet a deadline
Thursday for a revised free-trade deal prompted warnings from two
key U.S. congressmen, who said more must be done to open up the
Asian country's auto market.
A leading U.S. business group, meanwhile, said it would "pull
out all the stops" to lobby for quick passage of a deal.
"Further negotiations will succeed only if South Korea adopts
concrete steps to open its market to U.S. exports," Michigan Reps.
Sandy Levin and Dave Camp said in a joint statement after the
countries said they would extend talks beyond Thursday. "While
there are other unresolved issues, nowhere is this more evident
than in the dangerously lopsided trade in automotive vehicles."
Levin is the Democratic chairman of the House Ways and Means
Committee, which has jurisdiction over free-trade deals. Camp is
the panel's ranking Republican and in line to become chairman when
the new Congress takes over in January. They are also key allies of
the auto industry.
The U.S. Chamber of Commerce said in a statement it was
"disappointed" at Thursday's outcome but believes progress has been
made and differences "narrowed."
"We urge both presidents to direct their ministers and staff to
resolve remaining details with the greatest possible speed and
urgency," the Chamber said. "Time is of the essence. American jobs
are on the line."
The Chamber said that with the imminent implementation of a
trade deal between South Korea and the European Union, the U.S.
could lose 340,000 jobs without its own deal in place.
"The Chamber is ready to pull out all the stops to explain the
benefits of this agreement to the American people and help move the
pact through Congress," the statement said. "The sooner we get this
deal done, the sooner it will start creating new American
jobs."
Lori Wallach, a trade expert at watchdog group Public Citizen, a
skeptic of the original U.S.-South Korea pact proposed during the
George W. Bush administration, called on President Barack Obama to
ensure the deal wouldn't lead more U.S. companies to move
operations overseas, costing American jobs.
"The political liability of an Obama flip-flop on his election
trade reform commitments by pushing Bush's NAFTA-style Korea deal
without delivered the significant changes he promised, including to
the job-offshoring investment rules, cannot be overstated," Wallach
said in a statement.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com