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Domestic Challenges Facing the U.S.-Korea Free Trade Agreement Domestic Challenges Facing the U.S.-Korea Free Trade Agreement


As a former head of South Korea's Ministry of Trade, Industry and Energy, as well as a deputy director-general of the World Trade Organization, Kim Chulsu clearly sees the benefits of a U.S.-ROK free trade agreement (FTA). But many of his countrymen do not, and for the Roh administration, time to convince them is running short.

"I believe it can be done," Kim said of efforts to win over South Korean FTA detractors before the March 2007 deadline to conclude negotiations. But to do it, he added, will require a considerable political effort by leaders in both countries.

In the U.S., Kim began, there's bipartisan support for an FTA and though some industries-like agriculture and manufacturing-are skeptical, none are openly opposed. In South Korea however, though polls show the majority of voters supporting an FTA, Kim says many well-funded, well-organized industry groups-such as farmers, unions and filmmakers-are determined to scuttle any deal. Furthermore, many non-industry NGOs vehemently oppose the deal for anti-American ideological reasons.

Because President Roh's ruling Uri party is cautious about upsetting such powerful constituencies in an election year, the firm leadership necessary to solidify public support has been lacking. Prominent members of the Uri party have even come out against an FTA. Kim suggested that President Roh use his considerable influence to bring them back into the fold, while conducting a larger campaign to explain the FTA's benefits to voters.

Kim said American officials should avoid making inflammatory public statements that could aggravate anti-American sentiment. American trade officials should also craft their negotiating positions with South Korean sensitivities in mind. Many South Koreans fear that an FTA will flood the country with cheap American rice, endangering farmers' livelihoods. Many are also resentful of American reluctance to import goods made at the Kaesong joint-industrial complex in North Korea, perceiving it as a gesture of opposition to Korean unification. He suggested flexibility on these points in particular will be key.

"Accommodating Korea's positions," said Kim in closing, "would go a long way to helping the FTA's prospects in Korea."

Thursday, May 18, 2006 

About the speaker

Domestic Challenges Facing the U.S.-Korea Free Trade Agreement Domestic Challenges Facing the U.S.-Korea Free Trade Agreement


As a former head of South Korea's Ministry of Trade, Industry and Energy, as well as a deputy director-general of the World Trade Organization, Kim Chulsu clearly sees the benefits of a U.S.-ROK free trade agreement (FTA). But many of his countrymen do not, and for the Roh administration, time to convince them is running short.

"I believe it can be done," Kim said of efforts to win over South Korean FTA detractors before the March 2007 deadline to conclude negotiations. But to do it, he added, will require a considerable political effort by leaders in both countries.

In the U.S., Kim began, there's bipartisan support for an FTA and though some industries-like agriculture and manufacturing-are skeptical, none are openly opposed. In South Korea however, though polls show the majority of voters supporting an FTA, Kim says many well-funded, well-organized industry groups-such as farmers, unions and filmmakers-are determined to scuttle any deal. Furthermore, many non-industry NGOs vehemently oppose the deal for anti-American ideological reasons.

Because President Roh's ruling Uri party is cautious about upsetting such powerful constituencies in an election year, the firm leadership necessary to solidify public support has been lacking. Prominent members of the Uri party have even come out against an FTA. Kim suggested that President Roh use his considerable influence to bring them back into the fold, while conducting a larger campaign to explain the FTA's benefits to voters.

Kim said American officials should avoid making inflammatory public statements that could aggravate anti-American sentiment. American trade officials should also craft their negotiating positions with South Korean sensitivities in mind. Many South Koreans fear that an FTA will flood the country with cheap American rice, endangering farmers' livelihoods. Many are also resentful of American reluctance to import goods made at the Kaesong joint-industrial complex in North Korea, perceiving it as a gesture of opposition to Korean unification. He suggested flexibility on these points in particular will be key.

"Accommodating Korea's positions," said Kim in closing, "would go a long way to helping the FTA's prospects in Korea."

Thursday, May 18, 2006 

About the speaker

Program Info and Speaker Bio


Domestic Challenges Facing the U.S.-Korea Free Trade Agreement

with

Kim Chulsu 
Former Minister of Trade, Industry and Energy, 
South Korea


Kim Chulsu served as South Korea's minister of trade, industry and energy from 1993 to 1994 and as deputy director-general of the WTO from 1995 to 1999. For most of the 1980s, Kim was South Korea's top trade negotiator. In 1995 he became the first Korean recipient of The Korea Society's James Van Fleet Award. He is currently senior advisor at Lee International IP and Law Group in Seoul and chairman of the Institute for Trade and Investment, a research and consulting organization affiliated with Lee International.

Domestic Challenges Facing the U.S.-Korea Free Trade Agreement

South Korean and U.S. negotiators have until June 2007 to hammer out an FTA, and as the clock runs down, President Roh finds himself having to surmount substantial domestic opposition to any deal that would open the country's market to the U.S. Anti-globalization activists oppose the deal from a global perspective, and groups representing Korea's agriculture, manufacturing and service sectors contest that it would threaten Korean companies and Korean jobs.

According to Kim Chulsu, South Korea's former minister of trade, industry and energy, the Roh administration needs to find a way to address these concerns and win opponents' support for an FTA. A U.S.-South Korea FTA, Kim believes, would do much more than liberalize South Korea's economy. Its impact would help strengthen the U.S.-Korea alliance during a period of regional change. Failure to secure an FTA, on the other hand, would inflict serious damage on overall relations between South Korea and the U.S.

Can South Korea's opposition be brought on board for a meaningful FTA? And can it be done in time?

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