By Doug Palmer
WASHINGTON, May 14 (Reuters) - Top U.S. and South Korean officials on Thursday made little progress on automotive issues blocking a free trade deal, but agreed it was important to eventually pass the pact.
'Although this is not the right time maybe, we have to look for a good opportune time to move it forward,' South Korea's Trade Minister Kim Jong-hoon told reporters after his first meeting with U.S. Trade Representative Ron Kirk.
'It seems to me the U.S. has political constraints, the same political constraint that we have in Korea. So we need a lot of wisdom,' Kim said.
The deal could boost annual trade between the two countries, which in recent years has hovered above $80 billion, by a further $20 billion, some estimates say. South Korea is the United States' seventh largest trading partner.
They are also close political and military allies, working together in six-party efforts to end North Korea's nuclear program. About 28,000 U.S. troops are based in South Korea.
Some lawmakers from Michigan, Ohio, Indiana and other auto-producing states are pushing Kirk to renegotiate auto provisions of the pact they say will allow increased imports from the Asian automaker without tearing down South Korea's non-tariff barriers to U.S. exports.
Last year, the United States imported $11.4 billion worth of autos and parts from South Korea but exported only $855 million of cars and parts to the Asian country.
FORD IS VOCAL FOE
Kirk and Kim's meeting came after Chrysler filed for bankruptcy protection and amid concern that General Motors could be forced to do so within weeks.
Ford is in better shape but has been the most vocal of the Big Three U.S. automakers in opposing the pact, which would help South Korean rivals Hyundai and GM-controlled Daewoo expand sales in the United States.
President Barack Obama opposed the pact during last year's election campaign on the grounds its auto and manufacturing provisions favored South Korea too much.
But Obama told South Korean President Lee Myung-bak last month he wanted to make progress and invited Lee to visit Washington for talks in mid-June.
Seoul contends it already made a number of politically painful concession in the automotive sector and has refused to consider renegotiating those provisions.
'I told (Kirk) very clearly that reopening the text is not really the wise way,' Kim said.
But South Korea is prepared to work with the United States to find 'mutually acceptable solutions ... While I do understand some difficulties in the US car industry, in the first meetings we can not do everything at once,' Kim said.
Kirk said in a statement he briefed Kim on the Obama administration's review of the agreement and he plans to consult with Congress and other stakeholders over how to address concerns about the pact.
'The U.S.-Korea Free Trade Agreement has the potential to bring significant economic and strategic benefits to both countries, while demonstrating the U.S. commitment to expanding our economic engagement and leadership in Asia,' Kirk said.
A top congressional critic of the agreement repeated on Thursday that the pact's auto provisions had to be changed for it to win congressional approval.
'Contrary to what the Korean government has said, the automotive provisions are very unsatisfactory,' Michigan Democratic Representative Sander Levin told reporters.
'This administration, this Congress will not accept one-way streets' on trade, Levin said.
The pact enjoys strong support from U.S. business groups outside the auto industry.
(Editing by Alan Elsner and John O'Callaghan) Keywords: USA SOUTHKOREA/TRADE (doug.palmer@thomsonreuters.com; +1 202 898 8341; Reuters Messaging: doug.palmer.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
WASHINGTON, May 14 (Reuters) - Top U.S. and South Korean officials on Thursday made little progress on automotive issues blocking a free trade deal, but agreed it was important to eventually pass the pact.
'Although this is not the right time maybe, we have to look for a good opportune time to move it forward,' South Korea's Trade Minister Kim Jong-hoon told reporters after his first meeting with U.S. Trade Representative Ron Kirk.
'It seems to me the U.S. has political constraints, the same political constraint that we have in Korea. So we need a lot of wisdom,' Kim said.
The deal could boost annual trade between the two countries, which in recent years has hovered above $80 billion, by a further $20 billion, some estimates say. South Korea is the United States' seventh largest trading partner.
They are also close political and military allies, working together in six-party efforts to end North Korea's nuclear program. About 28,000 U.S. troops are based in South Korea.
Some lawmakers from Michigan, Ohio, Indiana and other auto-producing states are pushing Kirk to renegotiate auto provisions of the pact they say will allow increased imports from the Asian automaker without tearing down South Korea's non-tariff barriers to U.S. exports.
Last year, the United States imported $11.4 billion worth of autos and parts from South Korea but exported only $855 million of cars and parts to the Asian country.
FORD IS VOCAL FOE
Kirk and Kim's meeting came after Chrysler filed for bankruptcy protection and amid concern that General Motors could be forced to do so within weeks.
Ford is in better shape but has been the most vocal of the Big Three U.S. automakers in opposing the pact, which would help South Korean rivals Hyundai and GM-controlled Daewoo expand sales in the United States.
President Barack Obama opposed the pact during last year's election campaign on the grounds its auto and manufacturing provisions favored South Korea too much.
But Obama told South Korean President Lee Myung-bak last month he wanted to make progress and invited Lee to visit Washington for talks in mid-June.
Seoul contends it already made a number of politically painful concession in the automotive sector and has refused to consider renegotiating those provisions.
'I told (Kirk) very clearly that reopening the text is not really the wise way,' Kim said.
But South Korea is prepared to work with the United States to find 'mutually acceptable solutions ... While I do understand some difficulties in the US car industry, in the first meetings we can not do everything at once,' Kim said.
Kirk said in a statement he briefed Kim on the Obama administration's review of the agreement and he plans to consult with Congress and other stakeholders over how to address concerns about the pact.
'The U.S.-Korea Free Trade Agreement has the potential to bring significant economic and strategic benefits to both countries, while demonstrating the U.S. commitment to expanding our economic engagement and leadership in Asia,' Kirk said.
A top congressional critic of the agreement repeated on Thursday that the pact's auto provisions had to be changed for it to win congressional approval.
'Contrary to what the Korean government has said, the automotive provisions are very unsatisfactory,' Michigan Democratic Representative Sander Levin told reporters.
'This administration, this Congress will not accept one-way streets' on trade, Levin said.
The pact enjoys strong support from U.S. business groups outside the auto industry.
(Editing by Alan Elsner and John O'Callaghan) Keywords: USA SOUTHKOREA/TRADE (doug.palmer@thomsonreuters.com; +1 202 898 8341; Reuters Messaging: doug.palmer.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.