Foreigners to be given say in policy making
Korea Times | 8 January 2007
Foreigners to Be Given Say in Policy Making
By Kim Yon-se
Staff Reporter
Foreign companies will likely be invited to participate in policymaking processes of the Korean government.
The Ministry of Commerce, Industry and Energy (MOCIE) said Monday that the government is considering offering foreign companies operating here the opportunity to set forth their views and proposals before establishing new policies including regulations.
We could allow foreign investment ombudsmen and companies to participate in public hearings,'' a ministry official said.However, the plan will have to be discussed among all-related ministries.’’
The plan is mostly aimed at preventing possible risks of a series of lawsuits from U.S. investors after a possible free trade agreement (FTA) with the world’s largest economy.
In its FTA talks since last June, the U.S. has insisted that the Korean government fail to reflect foreign companies’ interest in policymaking. The U.S. is demanding Korea allow U.S. investors to have the right to file suits, including damage claims, against the Korean government.
The plan of the MOCIE has come as countermeasures against the possible introduction of a system under an FTA between Korea and the U.S., in which companies may be empowered to sue respective governments directly over discriminatory measures,'' a ministry official said.
By giving the right of expressing views before policymaking to foreign investors, the government is seeking to minimize complaints from U.S. investors.
Critics say the U.S. demand for national treatment for foreign investors is the most outstandingly poisonous part of the envisioned bilateral trade pact.This provision is very unequal, far from a normal economic pact,’’ said Jang Ha-joon, a professor of economics at Cambridge University.
The demand to open the government procurement market is another example of unfair trade negotiating, Jang said. He explained that the situation in Korea is different from that in the U.S., which consists of states with sovereign procurement rights.
``Even though Korea may have access to the U.S. government procurement market, it will also need to have separate negotiations with each state government.’’
