Washington and Seoul on Thursday appeared on the verge of a deal to reopen the South Korean market to US beef exports, which would clear a key hurdle for passage of a bilateral trade agreement. between the countries.
Dennis Wilder, the White House official who manages east Asian affairs for the National Security Council, said beef exports to South Korea would top the agenda at a summit beginning on Friday between George W. Bush, US president, and Lee Myung-Bak, his South Korean counterpart.
In Seoul, the farm ministry said an official announcement would be made Friday evening.
“We are extremely hopeful,” Mr Wilder said, adding that the negotiations were continuing. “It is a very co-operative process, a cordial process we’re involved in.” he said.
The import ban on US beef resulted from health and safety concerns following a case of mad cow disease four years ago.
Many lawmakers in the US have said that, until the ban is lifted, they would be unwilling to support ratification of the US-South Korea trade deal, which was signed last June and is the largest bilateral accord on the present administration’s trade agenda.
However, many experts believe that, even in the event of a deal on beef, the agreement could face an uphill battle to secure congressional approval, given the increasingly tense relations between the White House and Congress on trade.
Mr Bush and Nancy Pelosi, the House speaker, last week traded barbs over the administration’s decision to submit a contentious trade deal with Colombia for ratification without the consent of the Democratic leadership, and Ms Pelosi’s subsequent move to delay consideration of the deal indefinitely.
The Colombia spat raised fears that South Korean negotiators could be less inclined to make a big concession on beef if they believed the trade deal had few chances of getting through Congress.
Several lawmakers have also indicated that the deal does not do enough to open South Korea’s market to US carmakers.
However, Mr Wilder struck an optimistic note. “If we get beef, there are quite a few members of Congress who will vote for this [deal],” he said, hinting at the strength of the agricultural lobby on Capitol Hill.
Mr Wilder said US beef sales in South Korea had topped $1bn (€628m, £502m) in 2003, before the restrictions were imposed, and predicted the US would “easily” recapture those revenues if the trade agreement was approved.
Mr Lee, who was due to attend a dinner at the US Chamber of Commerce Thursday night with Montana beef on the menu, took office in February promising to strengthen Seoul’s alliance with Washington after several years of strained ties.
Max Baucus, chairman of the powerful Senate finance committee, which oversees US trade policy, said in a speech at the Chamber of Commerce dinner that the US-Korea trade deal “remains in a holding pattern”. The Montana Democrat added: “It will continue in that holding pattern until we clear the rough spots.”
However, Mr Baucus said he was confident that ultimately “we will find a landing zone where all parties benefit”.
North Korea will also be high on the agenda at the meeting with Mr Bush, amid signs of progress in the six-party talks about the country’s nuclear weapons programme.
Mr Wilder said there was “every indication” that Pyongyang intended to fulfil its agreement to provide a full declaration of its nuclear activities.
