Roh rebuts officials questioning FTA
The Hankyoreh, Seoul
Roh rebuts officials questioning FTA
Critics warn this could silence debate in gov’t over trade deal
14 April 2007
On April 12, Jeon Yun-churl, chairman of the Board of Audit and Inspection, raised questions over the introduction of an investor-state dispute system in the South Korea-U.S. free trade agreement (FTA).
His objections were brought forward during the second round of workshops on the trade deal among ministers and vice ministers, presided over by president Roh Moo-hyun, following the April 2 signing of the trade deal.
An investor-state dispute system allows an investor to bring a suit against another country’s government in an international tribunal if the investor believes he is suffering fiscal damage due to that government’s policies.
"Civic groups have argued that the introduction of an investor-state dispute system could significantly damage Korea," Jeon was quoted as saying by multiple participants at the workshop. "Since the North American Free Trade Agreement (NAFTA), Mexico has been significantly damaged by this system," Jeon said.
Immediately after Jeon made his remarks, President Roh began his rebuttal, according to the participants. "After the establishment of NAFTA," the president was reported as saying, "the value of compensation from investor-state disputes totaled about US$30 million for 13 years. Given this amount, can we really say this represents ’a large damage?’ "
The president continued, "Mr. Jeon, can you live without a market opening? If we don’t open our market, will the country see no damage?" he was reported by participants as saying.
Jeon reportedly maintained his stance, continuing to raise questions as Prime Minister Han Duck-soo briefed participants about countermeasures needed following the implementation of the South Korea-U.S FTA.
During the first round of the workshops on April 3, President Roh also rebuked Maritime and Fisheries Minister Kim Seong-jin for what the president called a "poor performance" regarding Kim’s presentation on how much damage the FTA would bring to the fishing industry and what countermeasures would need to be prepared. At the second workshop on April 12, Roh said, “Where is the minister of maritime and fisheries? I’m sorry to have damaged your name," referring to the April 3 rebuke.
Some critics said that such rebuttals from President Roh may hinder debate by cabinet members concerned about the potential effects of the South Korea-U.S. FTA.
Responding to President Roh’s refutation against Jeon, a former minister during the Kim Dae-jung administration said that he agreed with the president’s right to rebuttal, saying that it was not beyond his authority. However, another former minister during the same administration said, "When the president publicly refutes ministers, it could prompt the ministers to stop any debate. If things go that way, how can ministers focus on setting up countermeasures?"
A close advisor to President Roh said, "The president originally organized the workshop to seek alternative measures via free discussion. [At the April 12 workshop] there was no refutation [intended] against any certain individuals," the advisor continued. Yoon Seung-yong, a spokesman at the presidential office, agreed, saying, "The mood [at the April 12 workshop] was good; there was no refutation of others."
