By Lee Hyo-sik
Staff Reporter
The country's top economic policymaker said Monday that the government will take necessary steps to sign a free trade agreement (FTA) with Australia as early as possible.
Finance and Economy Minister Kwon O-kyu asked senior ministry officials to thoroughly study the feasibility of the trade pact between the two nations. ``The joint feasibility study on Korea-Australia FTA by the two countries is underway and scheduled to be completed by the end of the year. But if is necessary for us to sign the accord as soon as possible, we should speed up the process.''
Australia has been asking Korea to hold negotiations for the bilateral free trade accord over the years, but the world's 13th largest economy has been reluctant to do so as the FTA will likely increase its imports of agricultural and livestock products, which will draw protest from the nation's farmers.
A senior ministry official said the country has been lukewarm about reaching the free trade accord with Australia. ``However, since Korea signed the FTA with the U.S., the one with Australia would not negatively affect the country's agricultural sector as much as it would otherwise. Korea is expected to garner more benefits than harms in signing the FTA with Australia.''
Last December, President Roh Moo-hyun and Australian Prime Minister John Howard agreed to launch a feasibility study on the FTA between the two countries in the first half of the year. In 2005, South Korea had a trade deficit of about $6.1 billion with Australia with bilateral trade topping $13.7 billion. The country mostly imports livestock products, and minerals and other raw materials, while exporting industrial goods.
Kwon also said the government should draw up comprehensive measures to secure natural gas, uranium and other raw materials overseas at affordable prices, saying prices will likely continue to show an upward curve in the future because of strong demand from China, India and other developing economies.
``We should encourage domestic companies to actively explore energy resources in foreign countries. If necessary, the government should provide tax breaks and other support measures to help firms acquire stakes in oil fields as well as other resources development projects overseas,'' Kwon said.