US: Autos Still Hinder US-SKorea Trade Deal

A senior U.S. trade envoy said Thursday that worries in the United States over trade barriers to American autos continue to block approval of a free trade agreement with South Korea.

Deputy U.S. Trade Representative Demetrios Marantis' comments temper President Barack Obama's pledge to strengthen trade ties with South Korea in his State of the Union address on Wednesday and signal a difficult road ahead for congressional ratification of the accord to cut tariffs and remove barriers to goods and services.

Marantis, fielding questions after a speech, gave no hint about when the deal would be sent to lawmakers for a vote, saying only that "substance will drive the timing." When pressed on specific U.S. worries, he mentioned the South Korean auto industry's "unfortunate legacy" and "bad history" of excluding foreign autos.

Obama and Congress have faced criticism for not acting on the South Korea deal, which was signed during the George W. Bush administration. The U.S.-South Korean accord is stuck in political limbo amid dissatisfaction in Washington over South Korea's huge surplus in auto trade with the United States.

Despite Obama's comments on trade, many Democrats resist free trade deals that they say have contributed to a loss of jobs in the United States and to the weakening of worker rights and the environment in the partner country.

The U.S. government says U.S. exports to Korea could rise $10 billion to $11 billion annually because of the accord.

Rep. Ileana Ros-Lehtinen, R-Fla., chastised Democrats for blocking votes on pending trade deals. She urged Obama "to get off the sidelines and fight for the passage of free trade agreements with Colombia, Panama and South Korea."

Marantis said that exclusion from the competitive Asian market will cost U.S. jobs. He acknowledged, however, that many Americans have soured on the idea that free trade agreements with Asia will help create wealth for U.S. workers.