 |
Expectations are running high that Korean President Lee Myung-bak and U.S. President Barack Obama will announce a ``breakthrough’’ in the two countries’ bilateral free trade agreement (FTA) when they meet on Thursday.
U.S. Chamber of Commerce president Thomas J. Donohue on Wednesday expressed confidence in the two leaders’ resolve and commitment to the Korea-U.S. free trade agreement (KORUS FTA).
``My gut feeling is there will be a breakthrough and they (the two presidents) will announce a greater part of the agreement. I think they will come to a conclusion on a majority of the issues. This is a point in time that cannot be missed,’’ Donohue said, in a press conference, after his speech at the American Chamber of Commerce in Korea meeting at the Grand Hyatt Hotel, Seoul.
As of Wednesday morning, trade officials from Korea and the U.S. were still in talks to come up with a compromise on thorny trade issues. The KORUS FTA was concluded in 2007, but has been delayed due to U.S. demands for Korea to further open its auto and beef markets.
``What we are seeking here in terms of the export and import of automobiles is a level playing field... I’m comfortable we are moving in the right direction,’’ Donohue said.
Donohue appeared confident that the KORUS FTA will be more favorably supported by U.S. lawmakers, especially in the aftermath of the Democrats’ defeat in the Nov. 2 mid-term elections. He noted the election outcome showed American voters have made it clear their top priorities are jobs and economic growth, and the KORUS FTA ratification is expected to create more jobs for Americans.
``We now have an opportunity to move the trade and jobs agenda of the U.S. and reaffirm America’s role and leadership in Asia,’’ he said.
If the KORUS FTA fails to be enacted, a study by the Chamber showed the U.S. stands to lose 340,000 jobs and $35 billion in exports. The U.S. is also risking losing market share in Korea, with the EU-Korea FTA to be implemented by July next year.
While the European Union and Canada have been busy expanding trade with Asian countries, the U.S. has been lagging behind in free trade agreements in Asia. There are over 175 FTAs in force in Asia, and the U.S. only has two agreements with Singapore and Australia.
``Enacting the KORUS FTA will put America back in the game here in Asia,’’ Donohue said.
