MercoPress. South Atlantic News Agency

US/South Korea ambitious trade deal faces Congress hurdle

United States and South Korea signed a controversial free trade agreement, which still has to be ratified by Congress where some Democrats have expressed concern for job losses in the US car industry.

The ambitious agreement phases out tariffs on almost all consumer and industrial goods in the next three years and was signed just before President George Bush's fast-track trade powers expired June 30. The Democrat controlled Congress decided not to renew the President's trade promotion authority. These powers required legislators to either accept or reject agreements but did not allow for amendments, theoretically speeding up the legislative process. The US-South Korean pact was signed in Washington by US trade representative, Susan Schwab, and her South Korean counterpart, Kim Hyun-chong. Trade between the two countries is currently in the range of 80billon US dollars a year. It is the largest deal of its kind since the North America Free Trade Agreement, NAFTA, was signed in 1993. But the deal has sparked opposition on both sides and many Korean workers and farmers fear it will cost them their jobs and have long battled the deal. They promised to continue their protests. US Democrat Senator and presidential hopeful Hillary Clinton recently said in Detroit, seat of the US auto industry, that the deal agreed in April after 10 months of negotiations, was "inherently unfair". However supporters from many business groups, say it will expand opportunities for the US across a range of sectors, including banking and telecommunications. "It's a great day for international trade," Ms Schwab. But political experts believe this deal could prove the final nail in the coffin of efforts to secure a global trade deal, in the framework of the Doha Round, where negotiations have been stalled for some time. "Our legislative priorities do not include the renewal of fast-track authority," said House of Representatives speaker Nancy Pelosi. The Bush administration said the end of the fast-track authority, which was approved in 2002 and extended in 2005, was "regrettable". "It will be damaging to our economy and our national security," said spokesman White House Tony Fratto, adding that the country's "leadership role" in trade was being abandoned.