Lee administration searching for “creative solutions” to KORUS FTA renegotiation

Posted on : 2010-09-06 14:25 KST Modified on : 2010-09-06 14:25 KST
Experts have said “creative solutions” should but are unlikely to benefit S.Korea
 South Korean ambassador to the United States
South Korean ambassador to the United States

By Jung Hyuk-june

 

As South Korean and American trade authorities are expected to enter what is virtually a renegotiation of the South Korea-U.S. Free Trade Agreement (KORUS FTA), agreed upon in April 2007, interest is focusing on what was meant by the “creative solutions” mentioned by South Korean Ambassador to Washington Han Duk-soo. Trade negotiators from both countries must find a point of agreement that does not impact the existing text, in the event that a renegotiation takes place. This is because if the articles of the existing text are changed, South Korea would have to reassess domestic opinion and re-ratify the agreement in the National Assembly.

The Lee Myung-bak administration is still repeating the mantra that it has yet to receive an official request from the United States regarding a renegotiation of the FTA. However, Ambassador Han, who is called an “FTA missionary,” continues to make statements at odds with the administration’s official stance. At an event pressing for the ratification of the KORUS FTA in Washington on July 14 (local time), Han said South Korea was ready to consider “creative solutions” to open the South Korean market to U.S. beef and cars. On July 23, the Washington Post said Han stressed that he wanted to see more Ford and GM cars in Seoul.

Trade experts believe when there are no more than two months remaining to conduct substantive renegotiations, “creative solutions” are likely to become “shabby” solutions like backroom dealings. If what the trade delegations from both agree upon is exchanged in diplomatic document form and South Korea reflects this in a legal ordinance or a ministerial instruction, it need not go through a hearing or parliamentary deliberations.

It is very likely the U.S. will also chose ways to substantively boost U.S. auto sales rather than formal changes in the agreement text. The South Korean government, considering critical domestic opinion, also could say this does not conflict with the principle of “no renegotiations.” Trade Minister Kim Jong-hoon has stressed on several occasions that there would not be any renegotiation of the text, be it a single period or a comma.

South Korea and the United States enacted similar measures when they conducted additional negotiations regarding U.S. beef in June 2008. At the time, the United States claimed these were “discussions,” not “negotiations,” and the Lee Myung-bak government, which was embarrassed by the candlelight vigil demonstrations, said the talks were “additional talks commensurate with a renegotiation.” 

Another expected “creative solution” would be to conduct renegotiations for only automobiles under the condition of the United States giving up demands to export beef over 30 months old. This is because if the two sides renegotiate beef, an issue in which South Korea’s quarantine sovereignty rests, citizens could once again bring out the candles.

If South Korea allows the import of U.S. beef over 30 months old, it must amend its import sanitation conditions and its livestock disease prevention laws in the National Assembly. In this case, it is clear it will cause waves with the political sphere and civic organizations. On the other hand, in the case of the automobile sector, it is an easier issue compared to beef, since the Lee administration only needs to withstand protests from Hyundai-Kia Automotive Group, which will be the biggest loser.

Trade law expert Song Gi-ho said, “I am opposed to renegotiations, but if South Korea has to renegotiate, the agreement also has to change articles unfavorable to us, such as those regarding agriculture, services, intellectual property rights and investor-national dispute resolution.” Song also warned, “If it does not, and the South Korean government uses a shabby method to accept U.S. demands, it will receive resistance from the public.”

  

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

 

Most viewed articles