Free-trade talks between the United States and South Korea ended in stalemate Friday as US negotiators boycotted discussions in protest at South Korea's new medical policy.
US officials did not attend the final day of the second round of negotiations that began Monday to forge a free-trade agreement (FTA), the South Korean Ministry of Foreign Affairs and Trade said. "US negotiators did not take part in today's discussions. Our side also told them that there would be no meeting today," it said in a statement.
The boycott came after the United States stopped a session on pharmaceuticals in protest at South Korea's new policy on drug-pricing which reimburses patients when they buy medicines listed by the government. US negotiators insisted the new system would end up discriminating against foreign products, which are not on the so-called positive list.
"We don't believe this proposed change in the Korean system towards a positive list will achieve the objective that Korea has stated for itself on this sector," top US negotiator Wendy Cutler said.
"We believe the proposed positive list system will end up discriminating against and limit access of Korean patients and doctors to the most innovative drugs in the world," she said. The United States urged South Korea to scrap its new medical system or revise it through negotiations, but South Korea remained adamant.
Calling the boycott an "inappropriate act", South Korean Health Minister Rhyu Si-Min said the new system was aimed at offering good medicine at low prices. "We are trying to do good for our people by cutting medicine prices, but the US overturned the negotiating table," he told the JoongAng daily newspaper.
Negotiations are divided into 18 sessions to come up with separate outlines of accord but South Korea has been reluctant to reduce trade barriers on its auto, agriculture and pharmaceutical markets.
South Korea has also maintained a tough stance over rice amid daily protests by farmers, unions and activists against any market-opening measures that would allow cheaper imports of US products.
Some experts here have said an FTA may result in additional agricultural imports of up to 3.2 trillion won (3.36 billion dollars) every year. The United States has also refused to treat goods produced in an industrial complex in North Korea's border city of Kaesong as South Korean-made products.
The complex is a sensitive issue, as US officials believe it helps North Korea earn hard currency which is then used to build up its nuclear and missile programs.
South Korea is seeking to open up the North's closed society through the project but its position has been hurt by Pyongyang's missile tests last week.