Seoul Reiterates No to FTA Renegotiation

South Korea said Monday that a free trade agreement (FTA) with the U.S. should go ahead as it is, ruling out the possibility of renegotiations with the new administration of President-elect Barack Obama.

"If the U.S. calls for renegotiations, it would run counter to international practices and undermine its credibility," Lee Hye-min, deputy minister for FTA, was quoted as saying in a radio interview by Yonhap News.

The two countries reached an agreement in April 2007 after a year of negotiations. The pact is now subject to approval by the legislatures of both countries, but ratification has been delayed by political debates on both sides.

There has been speculation that the U.S. could adopt protectionist trade policies due to the current global financial crisis, and that an Obama administration will likely request overall revisions to the FTA, especially with regard to the automobile sector.

Obama, who recently described the free trade deal as "badly flawed" in terms of fairness, has often stated that bilateral auto trade between South Korea and the U.S. strongly favors the former.

South Korea shipped about 700,000 automobiles to the U.S. last year while importing 5,000 from the U.S. Democrats also want more steel shipments to be allowed into South Korea.

Under the free trade deal, the two sides agreed to slash and phase out tariffs on autos, while South Korea promised to change its tax system for larger vehicles.

"As to agreements on the auto trade, there is nothing new that the U.S. gets through possible renegotiations," Lee said, adding that tax and non-tax issues were all resolved.

Last week, South Korean Trade Minister Kim Jong-hoon also said that the U.S. auto industry's difficulties are not new ones and of its own making, noting that U.S. automakers should strengthen their own competitiveness.