S. Korean Trade Minister Reiterates No FTA Renegotiation
South Korea's top trade official said Thursday that the government would not respond to a possible demand from the United States to amend a bilateral free trade accord, according to Yonhap News.
"Even if the U.S. proposes renegotiations of the free trade deal, we don't need to respond to it," Trade Minister Kim Jong-hoon was quoted as saying on a local radio program.
U.S. President Barack Obama, who was sworn in Tuesday, has said he favors free trade that benefits the U.S. but strongly criticized the deal with South Korea, known as the KORUS FTA, saying it does not adequately address an imbalance in auto trade between the two allies.
Some politicians in the U.S. have recently underscored the need for South Korea to renegotiate provisions of the pact covering trade in autos and other manufactured goods.
In particular, many Democrats believe auto provisions strongly favor South Korea's automakers and demand renegotiation of the trade accord on that basis. South Korea sold more than 700,000 vehicles in the U.S. in 2007, 100 times the number of American cars it imported, according to an industry tally.
Under the free trade deal the two sides agreed to phase out tariffs on autos, while Seoul agreed to change its tax system for larger vehicles, which the U.S. says is discriminatory.
"If the U.S. automakers want to increase their market share in South Korea, the KORUS FTA will be a good opportunity for them," Kim said. "All the things they have sought for years are included in the pact."
The accord is the largest for the U.S. since the North American Free Trade Agreement with Canada and Mexico and the biggest ever for South Korea. The bill, if ratified, will knock down tariff and non-tariff barriers between the two economies, which did $78.4 billion in two-way trade in 2007.
The agreement has yet to be put to a vote in either of the U.S. and South Korean legislatures.
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u778050 (59.5.146.141)
01-23-2009 10:44
correction: that should have read "How dare the Americans refuse to ratify the agreement!" :)
u778050 (59.5.146.141)
01-23-2009 10:43
This is my theory. I think the US knows that whatever it says about Korea it will get a knee-jerk reaction from them. By now appearing to reject the FTA in its current form Korean public opinion will suddenly swing round with demands of 'ratify' 'ratify' 'how dare the Americans refuse to renege on the agreement!' This will result in speedy ratification and shows that the American's understand the adolescent mentality of Koreans.
mwhilaker (86.200.19.226)
01-23-2009 05:17
Korean beef has at least 5 obvious problems: [1] gets melamine-filled, [2] BSE-filled (& covered up--see previous articles about that low regulatory regime), [3] clone-filled, [4] E. Coli filled; [5] soon IRRADIATED WITHOUT LABELS. Best choice? Source from US, organic, tagged, grass-fed cattle ranch you trust.
jimbo1a (59.20.215.91)
01-22-2009 16:48
As Donnie said, the comments by Kim Jong-hoon are just plain stupid and show an arrogance that clearly explains why Korea is looking to improve its brand. Korea has a reputation being immpossible to work with, and it will hurt them more than help them as their reliance on exports increase.
jimbo1a (59.20.215.91)
01-22-2009 16:46
This is just a lot of posturing for nothing. If the US says they want to renegotiate SK has no choice but to do so. It's either that or the FTA is DOA. There is no one in this administration that wants the FTA, and it does nothing for the US. I don't expect Obama to spend any more time on this then he does doing sit ups in the morning. This is not even near the top of the list of priorities. With the export business in Korea going into the toilets they may be the ones who want to renegotiate.