WASHINGTON — Following several days of talks, U.S. and South Korea negotiators reached a deal Friday to move a stalled free trade accord forward.
The U.S.-Korea Free Trade Agreement, initially negotiated by the Bush administration in 2007, was held up by outstanding issues between the two countries over autos and beef. The agreement announced Friday night included a provision that would phase out U.S. tariffs on South Korean cars over five years.
The trade pact requires Congressional approval before it can be signed by President Obama.
Two way trade in goods and services between the U.S. and South Korea in 2009 totaled $87 billion ($68 billion of that in goods). The U.S. imported 1.45 billion square meter equivalents, valued at $806 million, of textiles and apparel from South Korea in 2009. South Korea is the eighth largest textile and apparel supplier to the U.S.
The domestic textile industry has voiced concerns about the trade pact because they said it favors South Korean producers and would harm U.S. textile and apparel companies and cause substantial job losses.