Korea: Expectations for free trade talks in 2013
Arirang News | JAN 02, 2013
Expectations for free trade talks in 2013
The global economic slump naturally led to a global contraction in exports last year.
But Korea fared relatively well in terms of exports, especially after its FTA with the U.S. went into effect last March.
Exports of Korean auto parts and petroleum products posted double digit growth last year from the previous year, while foreign investment grew by over forty-six percent.
[Interview : Park Chun-il, Head Researcher Korea Trade Association]
"Because we signed an FTA with key global economic players such as the U.S., the EU, and ASEAN, investment is increasing for manufacturing plants that plan to export to those regions."
In the new year, however, it seems the controversial Investor-State Dispute clause will become the biggest issue for the Korea-U.S. FTA.
The clause allows foreign investors to seek international mediation for business disputes
[Interview : Kim Hyung-joo, Researcher LG Research Institute]
"The new government will work towards a smooth settlement on the ISD clause, rather than trying to renegotiate the clause completely."
The Korea-China FTA is still being reviewed … with the two sides having met officially four times last year.
They are set to meet for the fifth time in March this year … under the newly elected governments in both Korea and China.
But experts say the FTA talks will not be smooth,… as the two countries differ greatly on just how open their markets should be.
[Interview : Lee Si-hyung, Deputy Minister for Trade Ministry of Foreign Affairs]
"China deems a wider range of sectors as ’sensitive’ that they do not want to open for trade. So we need to negotiate those terms."
Experts say Korea, meanwhile, should come up with its own policies to protect its farmers and fishermen, who fear a sharp fall in demand once the trade pact goes into effect.
Meanwhile, China, Japan and Korea have agreed to start negotiations on a trilateral free trade agreement, but it may be a while before the scope and details of the pact are determined,…especially under Japan’s new Prime Minister Shinzo Abe, who has said that reviving the domestic economy is his top priority.
At a time when countries are working hard to maintain economic stability experts say it is more important than ever to make policies that contribute to raising the effectiveness of the country’s bilateral FTAs.
Yoo Li-an, Arirang News.
JAN 02, 2013
Reporter : Lian.yoo@arirang.co.kr
