US rejects Korea’s FTA trade-off deal
Korea Times | 28 December 2006
US Rejects Korea’s FTA Trade-Off Deal
New AMCHAM Leader Tells Korea to Go for Trade Pact or Face Consequences
By Kim Yon-se, Park Hyong-ki
Staff Reporters
The United States has dashed South Korea’s hopes of a trade-off over difficult issues that block their efforts to establish a free trade agreement (FTA), pressing Korea to accept its proposal or face the consequences.
In its letter to the U.S. Congress and the Korean government Thursday, the U.S. Trade Representative (USTR) clarified that it will not give any concession in the trade remedies sector, including anti-dumping and countervailing duties, to Korea, which require law revisions.
This means that Korean exporters will be subject to just as strong anti-dumping duties as ones currently imposed by the U.S. government, even if the two countries establish an FTA.
In a new briefing, Lee Hye-min, the second man in Korea’s negotiating team said, I think it is still possible for us to ask the U.S. to revise the law on anti-dumping duties as there are further chances for talks.''
Korea has called for the U.S. to soften its anti-dumping measures as one of its key demands together with the inclusion of goods produced in the Kaesong Industrial Complex in North Korea.
Meanwhile, the new head of the American Chamber of Commerce in Korea said that it's now or never for both Korea and the U.S. to establish a free trade agreement and benefit from it.We believe the KORUS FTA is a once-in-a-lifetime opportunity that neither nation can afford to miss,’’ William Oberlin, the newly elected chairman of the American Chamber of Commerce in Korea (AMCHAM Korea) told a press conference at the Lotte Hotel in downtown Seoul on Thursday.
Oberlin, also the president of Boeing Korea, voiced a sense of urgency for the two sides to make progress in the negotiations and meet the March deadline next year before U.S. President George W. Bush’s fast-track trade authority runs out in June.
The new chairman emphasized that if this bilateral deal does not go through on a timely basis, it is not only over, but also neither the U.S. nor Korea will have the energy to restart their trade talks.
The last time a U.S. president (Bill Clinton) lost trade promotion authority, it took almost eight years to regain it,'' Oberlin said.If that happens again, it is expected to make it more difficult to conclude a trade agreement. So many believe this may be Korea’s best chance.’’
Oberlin strongly believes that an FTA with the U.S. is a new growth model and is the only way to turn the tide around for Korea, which is facing a weak economy next year at around 4 percent growth, due to a strong won and rising oil prices.
It can also offset Korea’s unfavorable foreign business environment and declining foreign direct investment (FDI).
AMCHAM Korea’s Tami Overby echoed that an FTA will open a lot of doors for Korea, and will boost Korea as well as the U.S. in economic competitiveness.
Foremost, the bilateral trade accord will benefit the consumers the most in both the U.S. and Korea where they can gain greater access to each other's products,'' Overby said.An FTA will also help Korea to become a Northeast Asian economic leader.’’
AMCHAM Korea said it is cautiously optimistic'' that the two countries will reach a successful deal that is fair and balanced.Although we have no place in the negotiations, we will act as cheerleaders on the sidelines for an establishment of a win-win FTA on time,’’ said Oberlin.
