(2nd LD) S. Korea urges China to exercise 'political will' for free trade talks

(ATTN: CORRECTS para 5 to show this month's free trade talks between South Korea and China was 12th round, not 13th round)

BEIJING, July 30 (Yonhap) -- South Korea has called for China to exercise its "political will" to conclude negotiations aimed at signing a bilateral free trade agreement by the end of this year, South Korea's vice foreign minister said Wednesday after meetings with senior Chinese officials.

Vice Foreign Minister Cho Tae-yul said the latest round of negotiations earlier this month produced little progress, but the Chinese side hopes to conclude the talks in November, when China hosts this year's APEC summit that will draw many heads of state, including South Korean President Park Geun-hye.

Cho made the comments as he wrapped up a two-day visit to Beijing that included one-on-one meetings with Chinese Foreign Minister Wang Yi, Vice Foreign Minister Li Baodong and Vice Commerce Minister Gao Yan.

"During the meetings, the Chinese side urged South Korea to make efforts to conclude the free trade negotiations on the sidelines of the APEC summit in November," Cho said.

However, Cho said South Korea and China failed to make headway during the 12th round of negotiations in the South Korean city of Daegu this month because of differences on tariff removal for agricultural and industrial goods.

"When we ask the Chinese side to increase the level of liberalization on industrial goods, in return, the Chinese side asks us to increase the level of liberalization on agricultural goods. That's why the talks have gone on at a snail's pace," Cho said.

"So, I asked the Chinese side to exercise political will to help conclude the free trade negotiations by November," Cho said.

South Korea and its biggest trading partner began their formal free trade negotiations in May 2012.

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.

Two-way trade between South Korea and China, Asia's fourth-largest and the world's second-largest economy, respectively, stood at US$270 billion last year, according to Chinese government data.

Cho said South Korea has yet to make a decision on whether to support China's push to set up a regional bank to fund infrastructure projects in Asia, although the issue was raised during this week's meetings with Chinese officials.

"There still are many issues to be sorted out, including the planned bank's governance. No decision has been made yet," Cho said, when asked about South Korea's stance on the issue.

China has been preparing to set up the Asia Infrastructure Investment Bank as a counterbalance to the Asian Development Bank led by the United States and Japan, and has asked countries in the region, including South Korea, to join the drive. The U.S. has been negative about the Chinese plan.

During summit talks between South Korean President Park Geun-hye and Chinese President Xi Jinping in Seoul earlier this month, Beijing formally asked Seoul to join the bank.

kdh@yna.co.kr
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