Trade negotiations between the United States and South Korea have failed to narrow gaps on crucial issues like beef imports, leaving them for make-or-break talks next week, The New York Times reported on Thursday.

The report quoted officials familiar with the matter as saying that differences could not be resolved over the agricultural, automobile and textile issues. The talks could lead to calls for presidential intervention, it added.

The toughest disputes include Washington's demands that South Korea fully open its agricultural and beef markets and change its automobile taxation system that, it says, discriminates against American cars.

South Korea, for its part, wants to keep rice out of the deal and demands that Washington remove all tariffs on its cars and textiles, according to the report.

A deal with South Korea would not only add billions of dollars a year to bilateral trade, but also help two allies to strengthen a recently strained security relationship, the report said.

The two sides are trying to wrap up an agreement by March 31 because of the approaching end of President Bush's fast-track authority, which allows a president to send trade agreements to Congress for straight yes-or-no votes without the option of adding amendments.

The effort to complete a free-trade agreement is the largest such bilateral initiative at the moment for both sides. The two countries aim for a hike of 25 percent in two-way trade on last year's 78 billion dollars.

Source: Xinhua