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Seoul moves to ratify Korea-China FTA
Minister of Trade, Industry and Energy Yoon Sang-jick speaks during a meeting with heads of industry associations at the headquarters of the Korea Trade Insurance Corp. in downtown Seoul, Monday. Yoon called on the National Assembly to ratify the Korea-China Free Trade Agreement to boost Korea’s sagging exports to the world’s second-largest economy. / Courtesy of the Ministry of Trade, Industry and Energy
By Lee Hyo-sik
By Lee Hyo-sik
President Park Geun-hye and policymakers are calling on the National Assembly to ratify the Korea-China Free Trade Agreement (FTA) as quickly as possible to boost the nation’s declining exports to the world’s second largest-economy.
In a meeting with heads of industry associations Monday, Minister of Trade, Industry and Energy Yoon Sang-jick urged both the ruling and opposition parties to have the trade accord take effect soon, claiming Korea is losing 4 billion won ($3.4 million) in potential revenue every day.
Korea and China signed the trade liberalization pact in November 2014, but it has yet to go into effect as parliaments in both countries have yet to approve it. The accord was forwarded to the National Assembly on Aug. 31.
“Once the Korea-China FTA is ratified by the parliaments in both countries, this will create a $1.2 trillion market and provide new momentum for local exporters,” Yoon said. “However, we will be losing 4 billion won in sales every day until the pact goes into effect. To boost the sagging exports to China, lawmakers must pass the Korea-China FTA as soon as possible.”
The minister said Korea’s outbound shipments fell for the eighth consecutive months from a year earlier. Exports to China have been declining sharply as Chinese firms buy less finished and intermediate goods from Korean partners amid slowing economic growth, he said.
“Korea needs fresh momentum to jumpstart its sagging exports. I think the ratification of the Korea-China FTA will provide this. We need the accord to go into effect quickly,” the minister said.
Yoon’s remarks are the latest in a series of statements made by senior government officials urging the Assembly to ratify the free trade accord, which will open China’s market wider to Korean firms.
While in China last week, President Park Geun-hye called on lawmakers to pass the Korea-China FTA to increase bilateral trade and cross-border investment between the two nations.
On Monday, the ruling and opposition parties reached an agreement to set up a body to deal with Korea-China FTA issues. But political watchers say it will likely take some time for the Assembly to pass it, citing the opposition parties’ lukewarm stance to the pact.
The ruling Saenuri Party seeks to ratify the FTA by the end of October and have it take effect in January.
But the main opposition New Politics Alliance for Democracy has been arguing that the government should first introduce support measures for agricultural and other industries, which they say will be adversely affected.