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December 5, 2006  
 

The Financial Times

Seoul trade deal faces Congress hostility

 
By Eoin Callan in Washington
 

Democrats warned last night that a trade deal with South Korea - the most commercially significant bilateral US pact in more than a decade - was likely to "face strong opposition in Congress".

In a blow to negotiations, lawmakers who are set to take influential positions in the new Congress said provisions in the deal granting US carmakers access to South Korea's market were "disappointing to date".

Their opposition comes at a critical moment: negotiators from both countries are meeting in Big Sky, Montana, for five days of talks. The negotiations are seen as a last chance to agree the outline of a deal before President George W. Bush's fast-track trade authority expires this summer.

The opposition from Democrats makes it less likely that negotiators can reach a politically viable pact with South Korea, the world's 10th largest economy and the US's seventh largest export market.

Concessions on cars were seen by lobbyists as a lever in reaching a deal, amid signs of US willingness to make concessions on the most politically sensitive issues for Seoul, where there have been mass protests against the talks.

But Sander Levin, a congressman, said: "While South Korea continues to enjoy wide-open access to our automobile market, the US faces tall barriers to South Korea's auto market. This agreement will face strong opposition in Congress if these barriers are not torn down."

The Michigan lawmaker will be in charge of trade issues on the powerful House ways and means committee when the Democrats take power in January.

 

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