South Korea and China were ready to lock in 11th-hour negotiations this week to wrap up a landmark free trade agreement, a senior Seoul negotiator has said, adding the two nations have intensified efforts to reach a "politically acceptable" deal.
Kim Young-moo, director-general for FTA negotiations at South Korea's Trade Ministry who leads the South Korean negotiating team in the free trade talks with China, also called for Beijing on Monday to make a "big compromise" to seal a deal before top leaders of the two nations hold a bilateral meeting on the sidelines of the Asian-Pacific Economic Cooperation gathering in Beijing next week.
The chief trade negotiators from South Korea and China began two days of talks in Beijing on Tuesday to try to resolve major differences on sensitive issues -- farm products for South Korea and industrial goods for China, Kim said.
The level of chief negotiators will be upgraded to Yoon Sang-jick, South Korea's trade minister, and his Chinese counterpart, Gao Hucheng, when they open the 14th round of free trade talks Thursday, in a clear sign that the two nations are working hard to reach a deal.
"Our aim for this week's negotiations is to ask China to make a big compromise," Kim told a group of South Korean journalists in Beijing on Monday.
Asked about whether a deal is possible before South Korean President Park Geun-hye and Chinese President Xi Jinping hold a bilateral meeting next week in Beijing, Kim replied, "We leave open the possibility of reaching a deal before the bilateral summit, but there is also the possibility of failing to reach a deal by then."
However, Kim expected the trade ministers from South Korea and China to "make efforts to move toward a politically acceptable agreement, and the Nov. 6 talks could be extended by days until the bilateral summit between Korea and China."
"If major sensitive issues are still hanging in the balance this week, both sides will try to tackle those issues through last-minute negotiations," Kim said.
South Korea and China have reached or are close to reaching deals on 16 of 22 areas in the free trade talks, but major differences remain in high-profile areas, including how to eliminate tariffs on goods, services market, non-tariff barriers and rules of origin, Kim said.
The two nations started their formal free trade negotiations in May 2012, and Park and Xi agreed to work together to achieve an agreement by the end of the year during their summit in early July.
Agriculture and fisheries are considered the most sensitive sectors for South Korea, while China categorizes its manufacturing industries, which include the automobile, machinery and oil sectors, as sensitive.
China accounts for more than 30 percent of South Korea's exports. Two-way trade of goods between South Korea and China totaled about US$270 billion last year, according to Chinese government figures. (Yonhap)
