Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Gov't hit for poor handling of WTO developing country status
Members of a farming group stage a protest in front of the Government Complex in Seoul, Thursday, demanding the government not give up its developing country status under the World Trade Organization. Yonhap
By Nam Hyun-woo
By Nam Hyun-woo
The Moon Jae-in administration is facing growing criticism for its poor handling of public debate over whether to maintain its developing country status under the World Trade Organization (WTO), according to farmers and civic groups, Thursday.
The government will hold a meeting of economy-related ministers today to discuss whether to give up the status, which allows differential treatment under WTO regulations, following U.S. President Donald Trump's pressure on South Korea and other countries to decide this by Wednesday.
Administration officials held a meeting with representatives from farmers' groups Thursday to explain that there would be no immediate impact on the agricultural industry if the country gives up the status, but failed to win them over.
“The government should reflect on the fact that the Korean economy has grown because of the sacrifices made by the agriculture industry,” Kim Hong-gil, chairman of a federation of stockbreeding associations, said during the meeting. “In Korea's signing of 75 free trade agreement, tariffs on agricultural products have been reduced to nearly, but the government has not provided any countermeasures.”
Successive governments have retained Korea's developing country status since the WTO was founded in 1995 to protect the agriculture industry. However, the tactic is facing a new challenge, as three months ago President Trump demanded a number of countries ― Korea, Singapore, Brazil and China ― give up developing country status under the WTO. Singapore and Brazil have done this, while China is refusing.
As Trump has threatened that the U.S. will no longer treat any WTO member that Washington believes is not a developing country as one, the government is leaning toward dropping the status to secure leverage in the country's talks with the U.S. over cars and other trade issues.
In doing so, the government has been reiterating that the agricultural industry will suffer no direct impact, because a change in tariff rules for agriculture requires an agreement at the Doha Development Agenda (DDA) which has been stalemated since 2008.
However, analysts and farmers do not agree, saying the DDA situation guarantees nothing.
“It is a paradox that the government would willingly give up developing country status based on the belief that the DDA talks will not come to a conclusion in the near future, even though the government does not know the consequences of becoming a developed country under the DDA regime,” said Song Ki-ho, a lawyer specializing in international trade.
“The government could at least explain to farmers what Korea will get in return for giving up its status.”
Lawmakers are also criticizing the agriculture ministry.
“The Ministry of Agriculture, Food and Rural Affairs has no willingness to persuade other ministries to stop the government's move to give up developing country status,” said Kim Jong-hoe, an independent lawmaker. “Instead of protecting farmers, the ministry is reiterating that it is very difficult to maintain the status, and there will be no damage to the domestic industry.”