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Can Anyone Still Save the FTA?

The South Korean government has concluded that its proposed Free Trade Agreement with the United States has a P.R. problem. Workshop to be announced; head-scratching to follow. Let’s hope whatever discussion comes of this will be more productive than previous warnings about CIA microphones disguises as insects.

Thus far, the government has been afraid to take on the extremists, thugs, and demagogues who have seized control of this debate, often forcibly, but if those people comprise a significant portion of the last 14% of Koreans to support this government, my hopes are not high. For all of my ambivalence on the military alliance (and its ground component in particular), I’m convinced that an FTA would be a good thing for both countries. So, apparently, are most of the South Korean people.

Because the majority of Koreans can capable of seeing the issue in a more sensible light, it’s not too late to save the FTA. Unfortunately, it’s almost a sure thing that President Roh Moo Hyun won’t find the political will to do it.

6 Responses

  1. I wouldn’t be surprised to hear about counterfeiting of won. I pointed this out last week here. DPRK has the best of kind printers per NYT and certainly engravers. Unlike US and PRC, NO will look the other way by pressuring/controlling Bank of Korea by appointing his cronies. Just look the other way and mop up the counterfeit 50k and 10k won notes silently. This along with Kaesong ventures are new way to supply more money to sugar daddy Kim and not to mention other legit gifts of food and fertilizers.

    Per WSJ from Fri’s editorials:

    “That leaves South Korea as the last holdout in financing the Kim regime. As recently as May, President Roh Moo Hyun declared support “without conditions” for the North. And, after the July missile tests, he seemed more upset that Japan decried the launches. But Mr. Roh has also been losing domestic political support. His ruling Uri Party suffered a blow in local elections in May, and this Wednesday it lost another four parliamentary seats in a by-election. We wonder if President Roh wants his legacy to include being Mr. Kim’s personal banker.”

  2. As for FTA…

    Now why did NO and his liberal cronies initiate FTA with US, country they despise so much?

    I see 2 ulterior motives.

    1. Fan up anti-american sentiment
    As expected we will see more of violent and UGLY protest by farmers, leftis, and commies alike. I was utterly shocked to hear that the protest groups who caused so much damage couple of months ago received funding from government – somthing NO does for “citizen” groups. Why not just whip up weeks on end of protest? Hey NO won by 2% margin and NO knows if it hadn’t been for EXPLOTING poor accidental death of 2 girls.

    2. Legitimatize DPRK plus economic
    NO SLIPPED IN Kaesong into FTA. If Kim wants anything is some respect and legitimacy from US. One of the reason chaebols have not inve exported to US. By insisting on inclusion of products made in KS, this excuse won’t work and open the door for quasi-acceptance of DPRK as you can bet that KS will be used gateway to export everything out of DPRK. Kim toured China TWICE including Shanghai and Shenzhen and see China rise into mfg boosting the economy.

  3. Careful now, lets not go off the deep end here. There are lots a perfectly legitimate reasons why the ROK would want an FTA with the US. I think the reason why Korea is backing down now is because they are finding the US more ardent and demanding disucssion in broader areas than previous agreements signed with Singapore and Chilie. In short, I think the ROK side bit off more than they can chew.

    As for KS, there are rather legitiamate and innocous reasons why it was to be included in the inital talks (on the other hand the stand the ROK is making is not so). Opening talks often include talks about how to handle prodcution in extra-territorial areas. For the US this might include US protectorates in the South Pacific, or for both sides production done at sea outside territiorial waters (such as fishing and mining).

    Another big wrapped up in KS is content rules. This says in todays world of trade everywhere, what truly makes a product “Korean” or “American”. The ROK likely wants to make KS into a parts processing factory for reasons of labor price, worker skill, and protection of more higher pay and skill assembly jobs in the South. Er go, if KS made car parts are used in Hyundias the ultimate product may not be considered in the agreement as “South Korean”.

  5. US has previously said NK is not only counterfeiting the dollar but also the won, yuan, Thai baht, etc. South Korea is reporting growing levels of counterfeit won during past two years.