AP source: US, South Korea reach trade deal

[Kadie]

AP source: US, South Korea reach trade deal

By JULIE PACE and KEN THOMAS, Associated Press – 13 mins ago

WASHINGTON – The U.S. and South Korea have reached an agreement on a free trade deal sought by the Obama administration to boost American exports and create tens of thousands of U.S. jobs.

Negotiators reached a deal on outstanding issues related to the automobile industry, which have been a sticking point in the talks, said a person close to the discussions. The person spoke on condition of anonymity in advance of an official White House announcement.

South Korea is agreeing to allow the U.S. to lift a 2.5 percent tariff on Korean cars in five years, instead of cutting the tariff immediately. The agreement also allows each U.S. automaker to export 25,000 cars to South Korea as long as they meet U.S. federal safety standards.

The White House had hoped to reach an agreement last month when Obama traveled to Seoul, but both countries were unable to come to an agreement on outstanding issues. U.S. Trade Representative Ron Kirk and his counterpart, Korean Trade Minister Kim Jong-hoon, resumed negotiations in Washington this week.

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http://news.yahoo.com/s/ap/20101203/ap_on_bi_ge/us_us_skorea_trade_talks_3