Agreement Averts Trade War With Korea

After bargaining through the night, U.S. and South Korean trade negotiators concluded an agreement Thursday aimed at boosting the sale of American cars in South Korea.

The Seoul government agreed to reduce specified taxes against imported cars and to liberalize certification procedures.

The Clinton administration hailed its second market-opening car deal in three months as another significant economic boost for American manufacturers. In June, the administration reached a deal covering sales of autos and auto parts in Japan.

“While more needs to be accomplished to fully open the Korean auto market, this agreement is a significant step forward in creating a more competitive environment for U.S. autos,” said U.S. Trade Representative Mickey Kantor.