WASHINGTON: The US 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 US jobs in the largest trade pact in more than a decade. 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 US to lift a 2.5 percent tariff on Korean cars in five years, instead of cutting the tariff immediately. The agreement also allows each US automaker to export 25,000 cars to South Korea as long as they meet US federal safety standards and allows the US to continue a 25 percent tariff on trucks for eight years and then phase it out by the 10th year. South Korea would be required to eliminate its 10 perent tariff on US trucks immediately. The agreement would be the largest US trade deal since the 1994 North American Free Trade Agreement between with Canada and Mexico, and would bolster US economic ties with South Korea, the world's 12th largest economy. The White House had hoped to reach an agreement last month when President Barack Obama traveled to Seoul, but both countries were unable to broker a compromise on outstanding issues. US Trade Representative Ron Kirk and his counterpart, Korean Trade Minister Kim Jong-hoon, resumed negotiations in Washington this week. The agreement must still be ratified by lawmakers in both countries.
