Democrat victory in US could hamper FTA with Korea
Arirang News | 9 November 2006
Democrat Victory in U.S. Could Hamper FTA with Korea
With the trade-friendly Republican Party losing its grip on the House of Representatives for the first time in over a decade, there’s growing concern that the ongoing free-trade talks between Seoul and Washington will face tougher conditions.
With the Democrats’ victory in Congress, Washington’s trade policy in general will likely turn more protective. The party enjoys support from left-leaning interest groups who fear free trade will cost American jobs.
At stake is President George W. Bush’s "fast-track" negotiating power, which allows him to conclude trade deals. The Trade Promotion Authority expires next summer, and a Democrat-ruled House is unlikely to renew it. This adds pressure on trade officials from Seoul and Washington, to swiftly conclude the free-trade talks and bypass Congressional review.
But when it comes to the impact on specific trade areas under negotiations, analysts in Korea express varying perspectives. Some say Washington will likely ratchet up demands in auto talks should Sander Levin become chairman of the House Subcommittee on FTA. Levin’s home state, Michigan, is the heart of the U.S. auto industry.
But others say there will be no big changes to the negotiation climate. They stress that the Democrats’ fields of interest do not overlap with contentious areas in the FTA talks.
An official with the Korea International Trade Association (KITA) said, “The Democrats will have an advantage in pressing concerns over issues like labor and the environment, because the Democratic party have been advocating welfare and human rights. But since Korea and the U.S. have an agreement on labor and environmental issues as a whole, the Bush administration will have to acknowledge those concerns in negotiations of future trade agreements."
On Wednesday, a senior official in Seoul’s FTA delegation also stressed there is bipartisan support on Capital Hill for the free trade deal.
