hankyoreh

By Jung Eun-joo and Seong Yeon-cheol

U.S. President Barack Obama declared his intention to examine demands from the U.S. Congress to modify provisions regarding labor, investment, and finance in renegotiations of the South Korea-U.S. Free Trade Agreement (KORUS FTA).

According to Reuters and Inside U.S. Trade, Obama expressed this position at a meeting in which nine Representatives from the U.S. Democratic Party’s Trade Working Group who are opposed to the KORUS FTA were summoned to the White House on Thursday (local time) and asked for their cooperation. Obama also told the Representatives that if they submitted a list of additional concerns, he would consider the items and pursue them during the negotiation process with South Korea, Maine Representative Mike Michaud reported.

Michaud and the other Representatives submitted a press release in which they asked Obama for protection of worker interests and reduction of offshore processing through stronger labor standards, a revival of U.S. manufacturing through mutualism, and expanded exports by small and medium enterprises (SMEs). They also requested U.S. economic security through a reduction in the trade deficit, the prevention of financial crisis, and a balance between consumption and production.

This approach by the United States runs contrary to Seoul’s claims that the renegotiations are to focus on only a very limited portion of the existing agreement text.

During a South Korea-U.S. summit meeting in Seoul on Nov. 10, Obama reportedly said the reason the agreement had not been concluded was because “its content was not good, and we decided not to accept it.” He is also reported to have said, “We are taking a tougher approach for the sake the U.S.’s interests.”

Obama’s rejection of content agreed upon at a meeting between the two countries’ trade ministers has led analysts to believe that he insisted on concessions from South Korea on items that would require revision of the existing text, including the extension of the tariff abolition deadline on South Korean cars and the total abolition of duty drawbacks.

Meanwhile, the ruling Grand National Party (GNP) has been visibly rattled after the government acceded to U.S. demands and entered renegotiations. As the party that railroaded the FTA ratification bill through the National Assembly’s Foreign Affairs, Trade and Unification Committee in December 2008 amid vehement objections from the opposition, it is deeply troubled by the start of renegotiations that will require discussions on the ratification bill to go back to square one.

GNP lawmakers have been openly critical of the administration’s decision to formalize renegotiations.

“It is meaningless to have renegotiations that begin without a clear promise for the U.S. that it will not bring up the issue of expanding U.S. beef imports,” said Foreign Affairs, Trade and Unification Committee Chairman Nam Kyung-pil in a telephone interview with the Hankyoreh on Friday. “If a ratification bill comes over to the National Assembly with content relaxing restrictions on beef imports, it is unlikely to be introduced.”

Speaking Friday on CBS Radio, GNP Lawmaker Hong Jung-wook said, “Regardless of the reason, when the government acknowledges the need for renegotiation after declaring repeatedly that it would not ‘touch a single comma or period’ of the agreement’s text, it has failed to live up to its words to the people of South Korea.”

Hong also said, “Now that Pandora’s box is open, the administration needs to be prepared for the possibility that it could break the KORUS FTA.”

Regarding statements in defense of the Lee administration made during an interview with reporters Friday by GNP floor leader Kim Moo-sung, a GNP party official said, “The administration basically engaged in a complete deception of the South Korean people. Is it going to convince anyone if he says to trust the administration?”

The official went on to say, “Even so, the party leadership is just letting itself get dragged along, focusing only on keeping the administration happy.”

Please direct questions or comments to [englishhani@hani.co.kr]