FTA hits snags
Korea Times
FTA Hits Snags
Both Sides Should Spur Negotiators Into Bolder Compromise
11 September 2006
The trade liberalization talks between Korea and the United States have passed a turning point but have made little agreements of substance. The third-round negotiations, which ended a four-day session in Seattle Saturday was another letdown, as each side sought to give the least and take the most. They only have two more rounds of talks in October and December to wrap up the bargaining and sign a free trade agreement by the end of 2006. The prospects, however, appear increasingly pessimistic.
Textile and agriculture were the main focus of interest in the Seattle talks, but both sides were disappointed with each other’s proposal. Accords in these crucial areas will likely come _ if at all _ toward the finale of the entire negotiating process. What drew our attention were some U.S. demands, such as those for regulating Korea’s large, family-controlled conglomerates, increasing foreign ownership of Korean TV broadcasters and writing the agreements in English only. None of these make any sense.
No international trade talks, bilateral or multilateral, have taken issue with a country’s corporate scale and practices. Korea’s chaebol have quite a few problems, but this should be none of the foreigners’ business. The U.S. entertainment industries, which have succeeded in opening the door of Korea’s film market wider by curtailing the screen quota to half, appears set to expand their stage to Korean living rooms. Writing international accords in only one country’s language is simply unthinkable.
Washington also reiterated its opposition to discussing antidumping rules and place of origin for goods made in Kaesong. The one-sided U.S. stance would only make officials’ job harder and fan the anti-FTA sentiments here. Even more pitiful was the government, which hinted at resuming the imports of U.S. beef in the middle of bilateral tug-of-war. The more Seoul appears anxious to conclude an FTA, the more it will lose and the greater popular suspicion will be.
Many hope Thursday’s summit between Presidents Roh Moo-hyun and George W. Bush will provide a breakthrough. With the two governments having failed to even work out a joint statement, they must not expect too much of that, either. Despite rising controversy on the Korea-U.S. FTA, it is imperative for Seoul to secure a growth engine through exports. This is especially so, now that the global trade liberalization talks under the auspices of the World Trade Organization have broken down.
The government has been under fire for failing to work out proper compensation for the victims of market opening in a rush to sign an accord. Unfortunately, both sides are willing to wrap up a deal before this year passes. Officials should realize, however, any seemingly satisfactory accord will prove useless if it fails to win popular support.
