Korea pushing to mitigate impact of free trade deals
Korea pushing to mitigate impact of free trade deals
Tuesday November 1, 2005
SEOUL, Nov 1 Asia Pulse - South Korea is moving to provide financial assistance and other support to companies and their workers who are adversely affected by free trade agreements with foreign countries, officials said Tuesday.
To that end, the government finalized a bill that helps cushion the impact of free trade deals on companies and their employees, according to the Ministry of Commerce, Industry and Energy.
The government is scheduled to submit the bill to the National Assembly this week for approval, with an aim for implementation starting in 2007.
The bill calls for providing affected companies with loans and counseling on management and technology. Workers will also receive support for reemployment.
The bill is designed to brace the domestic market for a full-fledged free trade environment, the ministry said, adding the United States has a similar support system in place.
The move comes as Seoul is keen to sign free trade deals with foreign countries as part of efforts to continue to power its export-driven economy.
South Korea is seeking to ink accords with other countries, including the U.S., after implementing its first free trade deal with Chile in April 2004.
The agreement with Chile sparked fierce opposition from local farmers, who were worried that imports of cheap Chilean produce would hurt their livelihoods.
According to the National Agricultural Cooperative Federation, South Korean imports of Chilean agricultural products have soared more than 50 percent since the implementation of the agreement.
Imports of produce from Chile soared 50.3 percent from a year ago to US$81 million between April 2004 and February this year, it said.
(Yonhap)
