By Lee Hyo-sik
Staff Reporter
Australia wants to sign a free trade agreement (FTA) with South Korea as soon as possible to forge stronger economic, political and social ties between the two, according to a leading Australian economist.
In a breakfast seminar titled ``Challenges for Korea and Prospects for Korea-Australia Cooperation in the Age of Global Turbulence'' held at the Lotte Hotel in downtown Seoul Thursday, Peter Drysdale, senior economics professor at Australian National University, stressed the importance of the FTA, saying it should be given the highest priority by the Korean government.
``The free trade accord between the two countries should be more comprehensive than the Korea-U.S. FTA and has to be implemented quickly. It should go beyond trades of agricultural commodities and industrial goods. It should include greater exchanges and cooperation on the areas of telecommunication and infrastructure,'' the professor told a group of Korean economists and policymakers at the seminar organized by the Korea National Committee for Pacific Economic Cooperation (KOPEC).
Australia has been asking Korea to hold negotiations for the bilateral agreement for years, but Asia's fourth largest economy has been reluctant to do so as the FTA will likely increase its imports of agricultural and livestock products, which will draw protest from domestic farmers. The nation has been running deficits with Australia, importing livestock products, minerals and other raw materials, while exporting various industrial products.
Drysdale said the trade pact with Australia would not negatively affect Korea's agricultural sector, adding it will garner more benefits than harm.
``When the FTA is signed, Korean consumers can enjoy cheaper and higher quality beef and other agricultural products from Australia. We can also help boost Korea's energy security. The trade agreement will allow Korean and Australian companies to operate more freely in each other's markets, which will boost market efficiency and economic growth for both nations,'' he said.
The professor urged the Korean government to take necessary steps to sign the trade agreement with his country, saying the delay of Korea-U.S. FTA ratification has negatively affected its prospects.
In response, KOPEC Chairman Yang Soo-gil said the delayed ratification of the Korea-U.S. trade accord by both sides has not and will not hinder Korea-Australia talks.
``Both the Korean and U.S. governments are working to have the bilateral agreement approved by their respective legislative bodies. In particular, the effort received a boost from the latest summit between President Lee Myung-bak and U.S. President Barack Obama. Despite some standing issues concerning Korea's U.S. auto imports and labor practices, I think the trade pact will likely be ratified by early next year,'' Yang said.
He said most Koreans want the Korea-U.S. FTA to go into effect as early as possible, adding that ongoing negotiations with the European Union for a similar deal is putting pressure on the U.S. side to approve the trade pact with Korea.
``At the moment, Korea is negotiating with multiple countries for free trade accords. I believe Australia is one of our top priorities,'' he added.
The chairman said Korea will play a larger role in G20, chairing the international gathering with Britain and Brazil, and hopes the larger group will replace G7 in the near future.
``The Korean government wants to form a cooperation group with other G20 members in Asia, including Indonesia and possibly China, and Australia to more effectively promote agendas that are important to the region,'' Yang said.