This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6257420.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
US-South Korea trade pact signed US-South Korea trade pact signed
(about 21 hours later)
The US and South Korea have signed a controversial free trade agreement, the biggest deal of its kind the US has finalised for 15 years.The US and South Korea have signed a controversial free trade agreement, the biggest deal of its kind the US has finalised for 15 years.
The deal has still to be ratified in the US Congress, where some Democrats have expressed concern for job losses in the American car industry.The deal has still to be ratified in the US Congress, where some Democrats have expressed concern for job losses in the American car industry.
The agreement phases out tariffs on almost all consumer and industrial goods in the next three years.The agreement phases out tariffs on almost all consumer and industrial goods in the next three years.
Trade between the nations is worth about $80bn (£40bn) a year. It was signed just before President Bush's fast-track trade powers expired.
'Unfair' 'Damaging'
The pact was signed in Washington by US trade representative, Susan Schwab, and her South Korean counterpart, Kim Hyun-chong. The Democrat controlled Congress decided not to renew the President's trade promotion authority, which expired at midnight on 30 June.
These powers required legislators to either accept or reject agreements but did not allow for amendments, theoretically speeding up the legislative process.
Our legislative priorities do not include the renewal of fast-track authority Nancy Pelosi, speaker of the US House of Representatives
Experts believe this could prove the final nail in the coffin of efforts to secure a global trade deal, where negotiations have been stalled for some time.
The Bush administration said the end of the fast-track authority, which was approved in 2002 and extended in 2005, was "regrettable".
"It will be damaging to our economy and our national security," said spokesman Tony Fratto, adding that the country's "leadership role" in trade was being abandoned.
The Democrats said the move would improve the conduct of US trade policy.
"Our legislative priorities do not include the renewal of fast-track authority," said House of Representatives speaker Nancy Pelosi.
Congressional concerns
The US-South Korean pact was signed in Washington by US trade representative, Susan Schwab, and her South Korean counterpart, Kim Hyun-chong.
Trade between the US and South Korea is worth about $80bn (£40bn) a year.
It is the largest deal of its kind since the North America Free Trade Agreement was signed in 1993.It is the largest deal of its kind since the North America Free Trade Agreement was signed in 1993.
The deal has sparked protests in South KoreaThe deal has sparked protests in South Korea
The latest deal has sparked opposition on both sides.The latest deal has sparked opposition on both sides.
Many Korean workers and farmers fear it will cost them their jobs.Many Korean workers and farmers fear it will cost them their jobs.
US Democrat Senator Hillary Clinton said in the car-making centre of Detroit recently that the deal, agreed in April after 10 months of negotiations, was "inherently unfair".US Democrat Senator Hillary Clinton said in the car-making centre of Detroit recently that the deal, agreed in April after 10 months of negotiations, was "inherently unfair".
But its supporters, from many business groups, say it will expand opportunities for the US across a range of sectors, including banking and telecommunications.But its supporters, from many business groups, say it will expand opportunities for the US across a range of sectors, including banking and telecommunications.
"It's a great day for international trade," Ms Schwab said."It's a great day for international trade," Ms Schwab said.
The deal had to be signed by a 30 June deadline or Congress would have been given the power to alter its terms. US lawmakers can now either reject or accept it.