hankyoreh

South Korea pledged Tuesday to craft a comprehensive assistance package to help farmers and other sectors deal with the fallout from a free trade agreement (FTA) with the United States.

The landmark deal, reached Monday after 14 months of negotiations, is expected to deal a blow to roughly 3.5 million farmers. Of the 1,531 agricultural items that the two sides wrangled over, Seoul agreed to immediately scrap tariffs on 576, or 37.6 percent of all goods.

Reports have said that agricultural output could fall by 2 trillion won (US$2.1 billion). South Korean agricultural products are at least twice as expensive as those from the U.S. and are vulnerable to market opening.

After a meeting of economic ministers, the government said it has decided to provide direct payment to farmers for a loss in earnings due to the increase in U.S. imports. It also said that monetary assistance will be given to farms and ranches that want to cease operations.

"We have to talk to farmers and agriculture umbrella groups, but direct payment for earning losses and closures are to be given to people who raise such livestock as cattle and pigs, and grow produce, including tangerines and beans," Vice Finance Minister Kim Seok-dong said. At present, the government gives direct assistance to kiwifruit and grape growers.

Seoul agreed to gradually lower tariffs on beef and pork over the next 15 and 10 years, respectively, while providing market access for beans and citrus, which could undermine local profits.

He also said the government will establish a special assistance fund to provide resources for farmers in the coming years.

South Korea has a 1.2 trillion won fund to help farmers overcome repercussions from the FTA with Chile. The new fund is expected be larger since the U.S. FTA would be more far reaching.

Kim said Seoul is in the process of conducting a complete damage assessment report in all sectors as a reference to allocate future assistance funds that should be made public within the month.

The remarks come as farmers have blasted the government for sacrificing their livelihoods and weakening the country's agricultural foundation, which cannot deal effectively with cheap imports.

The vice minister said Seoul planned to inject 100 billion won to help small manufacturing and service-related businesses that could be hurt by the opening of the local market.

"The money can be used to provide emergency operating funds and consulting and to help sell off businesses that cannot compete in the FTA environment," the official said.

Kim said policymakers will make full use of the 10 trillion won employment insurance fund so people can find new work or learn skills to help find employment.
Seoul, April 3 (Yonhap News)