Former trade minister opposes jurisdiction change
By Jun Ji-hye
Kim Jong-hoon Former trade minister
Former trade minister Kim Jong-hoon expressed opposition to President-elect Park Geun-hye’s controversial decision to move jurisdiction over trade affairs from the foreign ministry to the industry ministry, Monday.
Appearing on PBC radio, the lawmaker of the ruling Saenuri Party said, “I don’t think it will work out well if trade and industry functions are combined in one ministry.”
Rep. Kim recalled the 1990s when one ministry oversaw the two areas.
“At the time, the trade function was so confusing. When the Uruguay Round negotiations were going on, the industry ministry couldn’t effectively handle agricultural issues, which had a huge impact on the nation’s economy. It was because the ministry was specialized in manufacturing business,” the lawmaker said.
He claimed such a situation led to the agriculture ministry taking over the task.
“And then, responsibility was moved to the finance ministry and then to the foreign ministry. This only created confusion in the public,” he said, adding that such confusion was behind the birth of the trade bureau within the foreign ministry in 1998.
The former chief negotiator of the Korea-U.S. free trade agreement (FTA) said many developing countries combine trade and industry functions with the goal of protecting and nurturing manufacturing as an infant industry through trade policies.
“Korea’s manufacturing is no more in such a position that has to be protected. Rather, it has to offensively advance to the international market,” he said.
He pointed out that it is an outdated idea to promote national interests through trade policies.
The recent trend in trade affairs is beyond the manufacturing business. Instead, it is related to opening the service market as well as to the two nations’ legal structures and the judicial system.
Considering those, Kim raised concerns on whether the ministry, that is limited to domestic manufacturing, is able to fully manage such issues.
He suggested that the trade bureau could be placed under the prime minister’s office, citing that the office has the capability to reconcile possible conflicts between relevant departments on the occasion of trade negotiations.
Meanwhile, regarding the Korea-China-Japan FTA, the lawmaker said, “It will take some time because it just started in May. If there is any progress in discussion of Korea-China FTA, it will speed up the three countries’ talks on FTAs.”
The 60-year-old President-elect announced earlier that she will change the name of the Ministry of Knowledge Economy to the tentatively named Ministry of Industry, Trade and Energy, which will take over trade matters from the Ministry of Foreign Affairs and Trade.