By Kang Hyun-kyung
Staff Reporter
Seoul should complete a free trade agreement with the European Union as soon as it can to pressure the U.S. Congress to ratify the KORUS FTA as it is, an expert said Wednesday.
``If EU automakers are entitled to have preferential access to the Korean car market as a result of the accord, the United States would feel pressure,'' said Suh Jin-kyo, director of trade and investment policy at the Korea Institute for International Economic Policy (KIEP).
Suh made the remarks at a hearing on the KORUS FTA and its impact on major industries hosted by the National Assembly Foreign Affairs and Trade Committee chaired by Rep. Park Jin of the governing Grand National Party (GNP).
Rep. Song Young-gil of the largest opposition Democratic Party (DP) expressed a similar view at a meeting with party leaders, claiming the possible completion of a Korea-EU FTA will ``definitely'' concern the U.S. government and Congress.
Song had expressed objections to a GNP plan to ratify the KORUS FTA, stating the ratification would only engender several problems if the U.S. demanded renegotiations afterwards.
Since the beginning of the FTA negotiations with the EU last year, delegates from both sides have had seven rounds of negotiations, but still have deep differences on major issues.
Trade Minister Kim Jong-hoon met new EU Trade Commissioner Katherine Ashton in Paris to narrow the differences in issues including the auto industry. The two-day session ends today.
``The best case scenario for Seoul is that the U.S. Congress passes the current trade accord this year as it is, without making any changes,'' Suh said.
Some economists projected that the KORUS FTA, if it takes effect, would help boost gross domestic product by 0.3-0.6 percentage points.
They also say the trade accord also has other indirect positive effects on foreign direct investment and the local services sector.
In addition to the Korea-EU FTA, Suh singled out several other policy options that could possibly motivate the U.S. Congress to pass the trade accord while its key issues remain intact.
Suh said the government should announce its plan to commence a FTA with Northeast Asian countries.
``The U.S. government sees the KORUS FTA as a vehicle that can help preserve and expand its so-called strategic interests in the Northeast Asian region,'' he said.
Suh said the Korean government's seeking a trade deal with its neighboring countries, therefore, would alert the U.S. government and Congress as their interests are likely to be affected.
DP lawmakers did not participate in the hearing, demonstrating their opposition to the GNP's plan to ratify the trade accord.
DP leaders reiterated that the legislature should craft an assistance policy package for farmers and workers before ratifying the agreement.
Rep. Park Jin urged the DP not to play politics with the trade pact at a forum hosted by the Korea Institute for Defense Analysis.
Park reiterated his party's position that it would seek dialogue with opposition parties to reach a bipartisan agreement on the trade motion. The lawmaker, however, set a deadline for the ratification, saying his party expects to reach a consensus before next Monday.
hkang@koreatimes.co.kr
