Opposition pledges to scrap KORUS FTA after taking power

By Chung Min-uck

The main opposition Democratic United Party (DUP) pledged Wednesday to scrap the free trade pact with the U.S. (KORUS FTA) should it win the presidential election slated for Dec. 19.

“If the Lee Myung-bak administration doesn’t revise poisonous clauses in the KORUS FTA, we will break the entire agreement after winning in both the general and presidential elections,” said Han Myeong-sook, DUP chairwoman, during a Supreme Council meeting.

Under the agreement, either party can terminate the trade deal by sending written notification. However, it is still uncertain whether the notification must go through legislative proceedings or not.

The ruling Saenuri Party unilaterally passed the trade bill at the National Assembly last November, despite opposition from the DUP. The main opposition party and civic groups have been pressing the ruling party to delete some clauses in the agreement such as the Investor State Dispute (ISD) settlement system that they view favorable only to the U.S.

They claim the ISD system would let American companies bypass domestic laws by bringing cases to international courts.

The pact is expected to take effect at the end of the month.

Analysts say the DUP’s threat to nullify the treaty is an attempt to woo voters, particularly left-leaning citizens, ahead of the April 11 general election.

The KORUS FTA was originally signed under the Roh Moo-hyun administration in 2007. Critics argue that most DUP members back then were actually supporters of the trade pact and didn’t tackle the ISD system.

Back then, the ruling Uri Party (later the DUP) officially claimed the ISD system has no problems as it was “included in most free trade deals Korea has previously signed.” But lately they have switched their position, claiming “They didn’t know the system was that harmful.”

Observers say the DUP’s pledge to scrap the deal is not feasible and that it will only harm the nation’s credibility.

“(The DUP’s call) to scrap the deal after seizing power is not an easy task as it has already been ratified by both legislatures and is waiting to take effect. I cannot find any other reason (in the DUP’s move) besides politics to win the upcoming general election,” said professor Lee Dong-hwi from the Institute of Foreign Affairs and National Security, Wednesday.

“Secondly, (the DUP) should also consider the side effects that will be caused after scrapping the deal. It can seriously harm the Seoul-Washington alliance. If the DUP really put the idea into action, it will lower Korea’s credibility too,” added Lee.

Meanwhile, the DUP sent letters to U.S. President Barrack Obama, Vice President Joe Biden, and John Boehner, speaker of the U.S. House of Representatives, through the U.S. Embassy in Korea urging the suspension of the effectuation of the KORUS FTA.