By Jane Han
Staff Reporter
Korean and U.S. business lobby groups have taken turns this week advocating and urging the much-delayed ratification of the controversial free trade agreement between Seoul and Washington, but there still hasn't been much progress coming from lawmakers of either side.
After South Korea's top five business lobby groups appealed to legislators Tuesday, the American Chamber of Commerce in Korea (AMCHAM) urged Wednesday that the bilateral trade pact, known as the KORUS FTA, be ratified as soon as possible.
``We believe early ratification will help Korea and the U.S. recover from this recession faster than other countries,'' AMCHAM Chairman David Ruch said in a press conference.
The accord was inked under the Bush administration almost two year ago but has been stalemated ever since then, with legislators continuing to pick the agreement apart, which would cut and phase out tariff and non-tariff barriers between the trading partners.
South Korea's main opposition liberal party has been refusing to give in to President Lee Myung-bak's conservative ruling party's demand for a quick ratification, citing insufficient support measures for domestic industries expecting losses from KORUS.
In the Democrat-led U.S. Congress, some senior members have suggested that the bilateral trade pact isn't in America's best interests, particularly regarding the auto sector.
Many Democrats argue that the deal's auto chapter favors South Korean automakers, who have sold more than 700,000 vehicles in the U.S. while importing only 6,000, stirring concerns in Seoul that the new Barack Obama administration may seek a renegotiation, although the idea has been downplayed by U.S. business leaders including Thomas Donohue, president of the United States Chamber of Commerce in Washington, and the new AMCHAM chairman.
``AMCHAM firmly believes that the KORUS FTA is a gold standard agreement and there is no need for any renegotiation,'' Ruch told reporters. ``We have to recognize that the world is changing everyday, but that doesn't mean we're going to throw out the agreement and start over.''
The new chairman, who is also country manager of United Airlines in Korea, added, ``We understand Koreans' concerns over Obama's team, but we are optimistic after seeing his nominations to key positions.''
Ruch said until every position is filled, not all policies will be fully articulated.
The U.S. is South Korea's third-largest trading partner and South Korea is United States' seventh-largest, with two-way trade totaling $78.4 billion in 2007.