Obama and S.Korea's Lee vow to fight protectionism

SEOUL (Reuters) - South Korean President Lee Myung-bak and U.S. President Barack Obama agreed on Tuesday to fight against trade protectionism, as legislatures in both countries prepare to battle over a bilateral free trade deal.

South Korea and the United States reached the trade deal in 2007, which studies said is expected to boost their $78 billion annual trade by as much as $20 billion.

The bill has not been approved by legislatures in either country but is expected to come up for a vote in the coming weeks in South Korea.

Obama was quoted as telling Lee that trading states should fight the temptation to revert to protectionism, in the two leaders' first telephone conversation since Obama took office, Lee's spokesman said.

"A rise in protectionism can only delay the recovery of the global economy," Lee was quoted as saying.

Obama is opposed to the bilateral trade deal in its current form because it gives South Korean carmakers "untrammelled access to the U.S. market," U.S. Secretary of State Hillary Clinton said.

The South Korean government has refused to renegotiate the deal and pushed for an early ratification of the pact in its current form by its parliament saying it would put pressure on the U.S. Congress to approve it.

Surveys show a majority of South Koreans support the deal which bureaucrats and business leaders say will help raise local standards to international levels in key areas such as financial services.

Lee's conservative Grand National Party, which holds a large majority in South Korea's 299-seat assembly said it wants to approve the deal in parliament's February session.