Parties seek compromise on FTA
By Chung Min-uck
There is a sign of a breakthrough in the long-stalled Korea-U.S. free trade agreement (KORUS FTA) as the opposition Democratic Party (DP) is making steps towards a compromise.
According to sources, 45 of the 87 DP lawmakers reached a verbal agreement on renouncing physical blockage of the passage of the KORUS FTA, if the government makes a feasible agreement with the U.S. government on renegotiating the controversial investor-state dispute (ISD) settlement clause right after the trade pact takes effect.
They also decided to back efforts for restarting discussions with the governing Grand National Party.
The 45 lawmakers include Reps. Kim Dong-cheol, who represents the DP in the National Assembly’s Foreign Affairs, Trade and Unification Committee, Kim Sung-gon and Kang Bong-kyun.
“DP lawmakers who agreed on the proposal will soon declare their positions officially,” said an aide to Rep. Kim Dong-cheol.
Well reflecting the compromising mood, Rep. Nam Kyung-pil, chairman of the foreign affairs committee, Tuesday adjourned the committee’s general meeting.
The new proposal by the DP members is considered more moderate than the original policy of the party.
The opposition parties have been demanding the government scrap the ISD clause right away or let President Lee Myung-bak have U.S. President Barack Obama renegotiate the ISD clause during the G20 summit meeting held last week. They have pledged to physically block ratification of the trade bill until their demands are met.
The GNP is positively responding to the moderate approach by the DP members.
“I will decide on the next move based on how the DP decides on its official stance,” said Rep. Hwang Woo-yea, GNP floor leader, Wednesday.
“I am really thankful that there are new movements within the DP. I will hold on for a while and have more talks,”said Rep. Nam.
But it remains to be seen whether the DP will be able to make the moderate version of the demand as some senior DP members are denying the new proposal.
“The DP is opposing the KORUS FTA not as outdated ideology but for the survival of the ordinary people and the middle class. We need to collect public opinion so that we can have enough time for renegotiation with the U.S. and ratify the bill after the general elections for the 19th National Assembly,”said Rep. Sohn Hak-kyu, DP chairman, Wednesday.
The general election is slated for next April.
“The proposal is virtually the same as the consensus made by all DP members late last month. We are all in opposition to the ratification of the KORUS FTA before renegotiation,” said Rep. Hong Young-pyo, DP’s floor spokesperson.
The ISD is a system that allows firms of co-signatory countries to sue the opposition governments at the international courts if their rights were infringed by the government’s policies.
The DP claims the clause will incapacitate domestic policies while the GNP rejects the view, saying the ISD system is already accepted worldwide in FTA deals and given the fact that the U.S. Congress has already ratified the deal earlier last month.
A month ago, the floor leaders of the GNP and the DP held marathon negotiations and concluded a written agreement on sensitive issues including the ISD, but it soon fell through as the DP rejected the validity of the agreement at the general session.
The GNP is considering asking its former chairman and National Assembly Speaker Park Hee-tae to exercise his authority to pass the bill directly to the plenary session today to finalize the long-pending issue if the negotiations make no progress.