South Korea's industry minister called on the United States to quickly ratify a bilateral free trade agreement that has languished in limbo for nearly three years after being signed.
The two countries finished negotiations for the ambitious accord to cut tariffs and other barriers to commerce in April of 2007 and signed it three months later. There has been little progress since amid changes in government in both countries, the global financial crisis, declining trade and US demands that South Korea address its wide surplus in auto trade.
"I would like to ask the US Congress to develop the momentum for having the Korea-US FTA ratified as soon as possible," Choi Kyung-hwan, who heads the Ministry of Knowledge Economy, said Tuesday.
He was speaking at a question and answer session with US business exectives also attended by the US ambassador to Seoul. Choi said South Korea "would do its best" to ensure passage of the accord.
South Korea has continued to aggressively pursue other free trade agreements. Seoul has pacts in force with Chile, India, Singapore, the 10-member Association of Southeast Asian Nations and the European Free Trade Association, which comprizes Switzerland, Iceland, Liechtenstein and Norway.
South Korea has also concluded negotiations with the European Union, though the agreement must still be signed and ratified. Seoul is also negotiating deals with Canada, Mexico, Australia, New Zealand, Peru and Colombia.
Choi said the US remains a significant force in South Korea's economy despite being eclipsed by China, the European Union and Japan in overall bilateral trade rankings.
"Currently, China is seen as Korea's biggest trade partner, but you should take note that many Korean products go through China before arriving in the US and this also goes for Mexico as well," he said. "In terms of final destination this means that the US is Korea's biggest trade partner."
In 2009, the US ranked as South Korea's fourth-largest trading partner behind China, the European Union and Japan, according to figures posted on the Ministry of Knowledge Economy Web site.
Bilateral trade between South Korea and the US totalled $66.7 billion in 2009, down from $84.7 billion in 2008. South Korea's trade with China totalled $140.9 billion last year, down from $168.3 billion the year before.
"Foreign investment and advanced technology from the United States into Korea is very vital for Korea's economy," Choi said. "So the current relationship between Korea and the US should continue to grow."
In a speech earlier to the American Chamber of Commerce in Korea, Choi said that even as overall foreign investment into South Korea fell 2 percent last year, that from the US grew 10 percent.
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