Korea and the U.S. were stuck in negotiations over pharmaceuticals, medical equipment and agricultural products as a second round of bilateral free trade talks went into its third day. In the key agriculture sector, Korea is determined to resist U.S. demands to open markets at all cost. Scheduled talks on pharmaceuticals and medical equipment never reconvened on Wednesday after the U.S. team walked out on Tuesday, when Seoul would not budge on coverage of new drugs by its national health insurance.
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Riot police are stationed around Gwanghwamun and City Hall in Seoul on Wednesday, when a massive rally in protest against a Korea-U.S. free trade agreement was held.
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A Korean official said the U.S. wants Korea to scrap a plan requiring new drugs to go through approval for insurance coverage. The Korean government in May announced this new ¡°positive¡± coverage system, whereby the government only approves cost-effective drugs, for implementation in September. Under the current ¡°negative¡± system, virtually all newly developed drugs declared safe can be covered by insurance. Once introduced, it could reduce markets for new U.S. pharmaceuticals that fail to win approval here. When Korea declined on Tuesday, the U.S. delegation walked out and did not come back.
The two countries are also at odds over some other issues including Korea¡¯s car tax. But a member of the Korean delegation said overall negotiations were smooth and constructive. U.S chief negotiator Wendy Cutler at a meeting with ruling Uri Party lawmakers again stressed the two countries should make haste to conclude a free trade agreement before March, when the Bush administration¡¯s fast-track authority for FTAs from Congress expires.
(englishnews@chosun.com )
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