US President Barack Obama has vowed to work with Republicans and Democrats to pass a  free-trade pact with South Korea that he said was a model for future agreements he would seek in Asia and around the world.

US and South Korean negotiators struck a deal on Friday on the long-delayed pact, which was signed in 2007 but had not  been ratified for three years because of US auto and beef  industry concerns.

The pact was an accomplishment for Obama, who faced an  embarrassing setback when negotiators failed to settle their  differences before he visited Seoul last month, but it was  greeted less positively in South Korea.

'The agreement we're announcing today includes several  important improvements and achieves what I believe trade deals  must do. It's a win-win for both our countries,' Obama told  reporters in Washington.

A day after the Labor Department reported US unemployment  unexpectedly hit a seven-month high of 9.8 percent in  November, Obama said the pact would boost annual exports of  automobiles, agricultural products and other goods and  services by $11 billion and generate 70,000 additional jobs.

South Korean trade minister Kim Jong-hoon denied reports  in his country he had made concessions that were not  reciprocated. 'By accepting US demands on the auto sector, South Korea  may be able to advance the time to raise market share in the  US auto market,' he told reporters, citing growing local  production by South Korean carmakers in the United States.

The revised deal keeps the 2.5 percent US tariff on  South Korean cars until the fifth year of implementation,  while South Korea will immediately halve its 8 percent tariff  on US auto imports.

'Given the trend, having the 2.5 percent tariff for  another four years may have a limited impact on our auto  sales,' Kim said.

Obama said the agreement with South Korea showed the United States was ready to finalise more trade pacts --  business leaders wish two other long-delayed deals, with  Panama and Colombia, would also get through Congress.     

'I'm especially pleased that this agreement includes  groundbreaking protections for workers' rights and for the  environment. In this sense, it's an example of the kind of  fair trade agreement that I'll continue to work for as  president, in Asia and around the world,' Obama said.

'This agreement also shows that the United States of  America is determined to lead and compete in our global  economy,' he added.

Business leaders and analysts said free trade could be one  area of cooperation between Obama's Democratic administration  and Republicans in Congress, who won a majority in the House of Representatives in the Nov 2 elections, amid voter  discontent over the sputtering economy and worries over the  US deficit.

Obama said he looked forward to working with Congress and  leaders of both parties to approve the pact. - Reuters