WASHINGTON (AP) - The U.S. 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 U.S. jobs.
A person familiar with the discussions says negotiators reached a deal on outstanding issues related to the automobile industry. South Korea is agreeing to allow the U.S. to lift a 2.5 percent tariff on Korean cars in five years, instead of cutting the tariff immediately. The person spoke on condition of anonymity in advance of an official White House announcement.
The agreement also allows each U.S. automaker to export 25,000 cars to South Korea as long as they meet U.S. federal safety standards.
The U.S. had hoped to reach an agreement last month when President Barack Obama was in Seoul, but negotiators were unable to resolve outstanding issues. (Copyright 2010 by The Associated Press. All Rights Reserved.)