The push to bridge the remaining gaps comes just a few weeks after the two countries failed to meet a self-imposed deadline at the recent Group of 20 summit for solving problems with the deal they signed in June 2007.
It also comes against the backdrop of increased tensions on the Korean peninsula following a North Korean military strike last week on a South Korean island.
"The fact that both sides decided to proceed with the talks despite the current situation on the Korean peninsula demonstrates both sides' commitment to getting this done," said Troy Stangarone, director of congressional affairs and trade for the Korea Economic Institute.
"I'm inclined to think they will reach a deal," he said.
Asked about the outlook for the talks, USTR spokeswoman Carol Guthrie referred to remarks she made on Monday.
"Whether we reach agreement will depend on whether we can achieve our negotiating objectives," she said.
"To do that, we will need to see movement on the outstanding issues, particularly the opening up of the Korean market to American autos," Guthrie said.
Both Ford Motor Co . and Chrysler complain the pact negotiated by the administration of former President George W. Bush does not do enough to tear down tax and regulatory barriers that they blame for low sales in South Korea.
Imbalances in Auto Trade
The United States exported 7,663 cars and light trucks to South Korea in 2009 while it imported 476,857 from the Asian manufacturers there, according to U.S. Commerce Department figures.
Washington has pressed South Korea to accept U.S. car mileage and emission standards to remove an impediment to U.S. sales in the Korean market.
Guthrie has declined to say what changes the United States would be willing to make on its side to compensate South Korea for modifying the auto terms of the pact.
In an op-ed published on Monday in Politico, the outgoing chairman of the House of Representatives Ways and Means Committee accused South Korea of limiting foreign access to its auto market "to finance an aggressive push into the United States and other export markets."
"About 70 percent of South Korean auto production is exported -- creating lopsided, one-way trade," said Representative Sander Levin, a Michigan Democrat.
"Any successful agreement must ensure that Seoul allows U.S. automotive companies to secure a real, steady commercial presence. Ford Motor Company, a global producer with profitable operations around the world, now has only one dealership in South Korea, whereas Hyundai has 1,500 dealers in the United States," he said.
Some lawmakers and beef groups also want South Korea to commit to a process to remove remaining barriers to U.S. beef exports, consistent with international food safety guidelines. (Reuters)
South Korea has been adamant that its remaining beef import restrictions, which stem from the discovery of mad cow disease in the U.S. herd in 2003, are not up for negotiation at this time.
Tens of thousands of South Korean citizens took to the streets in protests in 2008, when President Lee Myung-bak gave into U.S. demands for a complete reopening.
To help stop the furor, U.S. industry agreed to ship beef only from cattle not older than 30 months, which is consider least likely to have disease. Under that voluntary pact, the United States has recovered much of its lost sales. (Reuters)
