Kaesong complex emerges as hurdle in FTA talks
Arirang News - Apr. 20, 2006
Kaesong Complex Emerges as Hurdle in FTA Talks
South Korea and the United States are holding behind the scenes negotiations to iron out differences ahead of a bilateral free trade agreement. One of many sticking points is whether the U.S. will accept goods made in the joint-Korean Kaesong Industrial Complex as South Korean products.
The two sides differ whether products made in the North Korean border city of Kaesong by South Korean companies can be included in the FTA negotiations. Meeting with reporters in New York, Seoul’s chief delegate for FTA talks Kim Jong-hoon said the issue will be dealt as "an agenda of great importance" on the negotiation table.
He was responding to media reports that Seoul will not address the matter with Washington for fear of hurting the trade deal. To further promote inter-Korean economic cooperation, South Korea wants the U.S. to treat products made in Kaesong as South Korean goods. But the U.S. argues only products made in South Korea can be subject to FTA negotiations. Seoul’s top negotiator said the matter was not just an economic one.
Yet South Korea says it will consult with the U.S. when it embarks on second-stage development at the complex as the next phases require progress in inter-Korean relations including deadlocked nuclear negotiations. Analysts say differences over such strategic issues could negatively affect the trade pact.
