US Position on FTA

Korea Needs to Be More Cautious About Ratification

A Korea-U.S. free trade agreement (FTA) faces a murkier prospect for ratification by the two countries. On Monday, U.S. Trade Representative nominee Ron Kirk told a Senate Finance Committee hearing that the KORUS FTA ``isn't fair." Kirk did not directly call for renegotiation of the trade deal. But his remarks were construed as reaffirming President Barack Obama's position expressed during last year's campaign trail that he would not approve the FTA with South Korea as it is.

To the eyes of Obama, his secretaries and Democratic congressmen, the bilateral trade deal appears to be unfair. Obama once called the FTA ``badly flawed" because of an imbalance in auto trade. Secretary of State Hillary Clinton said in January that the new U.S. administration is opposed to the trade deal with Korea, citing problems in the automobile and beef sectors.

During her Feb. 19-20 visit to Seoul, Clinton only used diplomatic rhetoric that the United States and Korea will make joint efforts for progress in the FTA, saying that the two sides shared a view that the trade deal will contribute to the development of bilateral ties. It seemed that she just temporarily kept mum on her government's refusal to move forward the deal in order to help Korea save face.

It has become more apparent that Washington is not willing to accept the FTA, which was signed by Seoul and Washington last June, without making any change to it. Kirk told the committee that the trade deal, which neither country's lawmakers have ratified, isn't acceptable and will have to be changed.

There is little doubt that the Obama administration has continued to put pressure on Seoul to renegotiate the deal so that the United States can sell more American cars, beef or other agricultural products in South Korea. Sen. Max Baucus, D-Montana, also told the hearing, ``Korea must find a way to accept all American beef from cattle of all ages. Then, I believe that the United States-Korea trade agreement could serve as a cornerstone of a broader economic agenda that embraces the dynamism of Asia."

In short, there are growing U.S. calls for changes to the Korea-U.S. FTA, especially amid the unprecedented economic crisis which revives trade protectionism. Washington is moving to strictly enforce labor and environmental standards to ensure fair trade. But U.S. officials have to keep in mind that the American government might lose its credibility if Congress rejects international deals, including the FTA with Korea, which was concluded under the Bush administration.

In this context, Korean officials and lawmakers of the ruling and opposition parties are required to take a more cautious approach toward the trade deal. The Lee Myung-bak administration has maintained its position that there will not be renegotiations. The problem is that the governing Grand National Party (GNP) is trying to railroad the Korea-U.S. FTA bill despite strong protests from the main opposition Democratic Party and other splinter parties.

It is not desirable that the National Assembly ratifies the FTA when the U.S. Congress is not ready to do so. Thus, policymakers and lawmakers need to work together to work out a bipartisan strategy to cope with the U.S. calls for changes to the deal and maximize national interests.