hankyoreh

By Jung Eun-joo
　　
Trade Minister Kim Jong-hoon’s recent briefing at the National Assembly on talks with the U.S. over the South Korea-U.S. Free Trade Agreement (KORUS FTA) has raised concerns over further U.S. demands for revisions. Minister Kim confirmed that the U.S. demanded revisions not only to non-tariff barriers such as safety standards and environmental regulations in the auto provisions, but also to a previously agreed-upon tariff abolition plan during the KORUS FTA renegotiations that took place prior to the G-20 Summit in Seoul.
While attending a meeting of the National Assembly’s Foreign Affairs, Trade and Unification Committee on Tuesday, Trade Minister Kim explained the results of his meeting with U.S. Trade Representative Ronald Kirk in Seoul on Nov. 8 to 10.
in regards to the trade ministers’ meeting, “Renegotiation means discussing revisions to the agreement text,” Kim said.
“The U.S. made demands that would require revising the agreement text, and the South Korean government expressed the position that this was unacceptable.”
This marks the first time Kim has acknowledged that the meeting with the U.S. was in fact for renegotiation.
In response to Kim’s statement, Democratic Party Lawmaker Park Joo-sun said, “Up until now, you have said that there would be no renegotiation, but an examination of the circumstances shows that there have been five renegotiations. You were dishonest with the people of South Korea.”
Kim answered, “It was impossible to agree to, as it included demands for revising the content of the agreement.” Kim then added in response to Lawmaker Park, “We are working to keep our promise.”
Kim reported that the United States, citing a trade imbalance in the auto sector, demanded not only plans for guaranteeing an expanded market for U.S. cars in South Korea but also measures restricting the advancement of Korean automakers in the U.S. This means that the United States, in addition to extending the deadline for tariff abolition on Korean automobile imports in order to protect the U.S. car industry, also demanded the creation of new safeguards.
According to the existing agreement, the United States is to eliminate the 2.5 percent tariff rate on cars with less than 3000cc displacement immediately, and to phase out tariffs on those with over 3,000cc displacement over three years and on pickup trucks (10 percent) over ten years. But if the safeguards are implemented according to the demands of the U.S. automobile industry, the tariff abolition or reduction benefits according to the agreement will also be suspended.
Regarding the schedule for additional negotiations in the future, Kim said, “Nothing has been set in stone yet, but discussions between the U.S. and South Korea will continue.”
He added that any changes or revisions to the existing agreement would go through procedures for re-ratification by the National Assembly.
　　
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