South Korea says no to U.S. trade talks

SEOUL (BBC) -- South Korean officials have dampened speculation that the country is willing to re-negotiate a free trade agreement with the U.S.

The move comes a day after President Lee Myung-bak indicated he was willing to talk about U.S. concerns at a press conference with President Barack Obama.

However, the Foreign Minister Yu Myung-hwan said the Korean president's comments didn't mean “renegotiation”.

The two countries have yet to ratify a treaty signed in June 2007.

U.S. officials have expressed repeated concerns about the free trade agreement's (FTA) impact on the country's ailing car industry.

In 2008, South Korea shipped about 600,000 cars to the U.S. compared to roughly 7,000 cars shipped by the U.S. to South Korea.

South Korean officials counter that the FTA would negatively impact the country's agricultural sector.

In 2008, two-way trade between South Korea and the U.S. amounted to $84.8bn (£50.8bn), making Washington South Korea's fourth largest trading partner behind China, the European Union and Japan.

The Korea Institute for International Economic Policy has previously said the FTA could boost South Korea's long-term growth by 6% and create about 340,000 jobs.

Likewise, in early November the U.S. Chamber of Commerce said that failure to ratify the FTA was putting 350,000 American jobs and export sales at risk.

South Korean President Lee Myung-bak (R) speaks during a news conference with U.S. President Barack Obama at the presidential Blue House in Seoul November 19, 2009. (Reuters/Kim Jae-hwan/Pool) -

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