S Korea's rival parties reach compromise on controversial clause in trade deal with U.S.

S Korea's rival parties reach compromise on controversial clause in trade deal with U.S.

 South Korea's rival parties have reached a tentative compromise over a controversial clause in the free trade agreement with the United States, possibly clearing a hurdle for the agreement on the way to legislative approval, local media reported Monday.

Opposition parties have demanded the Investor-State Dispute Settlement (ISD) clause, which allows U.S. investors to settle disputes with the South Korean government at international courts, be removed before the South Korean parliament votes on the long-pending trade deal.

Following discussions Sunday, the floor leaders of the ruling Grand National Party and the main opposition Democratic Party agreed that Seoul and Washington start negotiations over the clause within three months after the pact takes effect, according to local broadcaster MBC.

It remains to be seen whether the Democrats would agree to the tentative compromise between the floor leaders, according to MBC, while the ruling camp seeks to pass the bill through the parliamentary trade committee as soon as possible.

Seoul's two-way free trade agreement with Washington has been one of the most polarizing political issues here since it was signed in 2007, with opposition parties vowing to block what they see as a lopsided agreement in favor of Washington.

Policy think tanks here say the bilateral trade deal will create 350,000 new jobs and increase South Korea's gross domestic product by 5.66 percent, but critics dispute the estimate.

Editor: Xiong Tong

English.news.cn   2011-10-31 14:11:22 FeedbackPrintRSS
SEOUL, Oct. 31 (Xinhua)