FTA summary to be reported to National Assembly next week
Korea Times | 11 May 2006
FTA Summary to Be Reported to National Assembly Next Week
By Yoon Ja-young
Staff Reporter
A summary of the Korea-U.S. Free Trade Agreement (FTA) is expected to be presented by the Ministry of Finance and Economy to the National Assembly next week, while an exchange of agreement drafts with the U.S. is expected on May 19.
Vice Finance Minister Bahk Byong-won said at a regular press briefing Thursday the two countries will launch formal FTA negotiations on June 5 after analyzing the draft FTA texts.
We collected a total of 192 suggestions from diverse sources of the society. We're examining them carefully and will make use of them through the negotiation,'' Bahk said. Among the suggestions were calls for protection of some agricultural products, inclusion of products made at the Kaesong industrial complex in North Korea, earlier visa waiver programs and mutual recognition of some licenses such as nursing.
Bahk asked for the active participation of the people throughout the negotiations, whether they support it or not. A KORUS FTA, as Korea and the U.S. have agreed to call it, is expected to increase Korea's GDP by 2 percent and exports to its second largest market by 15 percent, according to the government.
Regarding the won's recent rise against the dollar. Bahk said other countries share the view the Korean currency has appreciated enough.
Exporting companies have been agonizing over the strengthening won, as it has strengthened more than 8 percent against the greenback so far this year.
Deputy Finance and Economy Minister Kim Seok-dong also said the government would not overlook the currency market.
Kim said in a radio interview yesterday the government can take stabilizing measures anytime if the currency market is disturbed for speculative trading or exchange rate hikes.Market intervention is not a poisonous measure but something that government or central bank can count on.’’
On Wednesday, Korea’s five major business and economic organizations jointly demanded the government swiftly and aggressively'' intervene to prevent the won from gaining further against the dollar. They said the won-dollar rate has reached a level that companies can no longer put up with.
Kim said the government is carefully watching, and added it is not without will or measures to curb the strengthening won.
After Kim hinted the government may intervene anytime, the won fell against the greenback Thursday. It closed at 935.60 won to the dollar, compared with 929.60 won a day earlier.
Kim also said there is no need for a change in economic outlook yet, in spite of a strengthening won and soaring oil prices.The economy hasn’t reached its peak yet,’’ he said, adding, the country will be able to attain the 5 percent growth target this year.
Bahk said Korea still has room to cope with high oil prices because of the tax system and the strengthening won. As Korea’s oil tax is based on quantity instead of price, the soaring international oil price is somewhat offset by the tax system.
