[Editorial] Korean Farming Industry Face More Difficulties After Collapse of WTO Talks

The fifth round of the World Trade Organization`s ministerial conference held in Cancun, Mexico ended without an agreement. The collapse of the meeting seems to provide temporary relief to angry farmers. However, the failure to produce an agreement at the talks is a development difficult to celebrate or cry over where Korea is concerned.

In particular, Korea is in a difficult situation to deal with its rice market opening. It has to renegotiate exporting countries such as the US, China, and Australia next year on the rice market opening issue. Rice is one of important agricultural products, accounting for half the incomes of the farming industry. Meanwhile, when it comes to the WTO DDA negotiation, Korea can be relieved to some extent due to Japan in the Korea`s side. It might be much difficult to fight powerful rich countries alone.

The possibility that members will produce an agreement on DDA agricultural issues before rice renegotiations begin remains to be seen. However, as shown in Cancun, Korea is not in a favorable position when it comes to agricultural market openings. Along with other 10 importing countries, the Korean delegation to the WTO talks showed lack of negotiation skills and strategies compared to rich counties such as the US and the EU. The government should map out proper strategies to keep the domestic rice market intact before the next round of trade talks by mobilizing every possible diplomatic channel. Close cooperation among importing countries are required.

Another important thing to do is the government should initiate comprehensive structural reform for domestic farming industry. It might be wrong for the government to focus on giving a rosy outlook on farming market openings to calm angry farmers or delay reforms for the industry. As long as the WTO regime persists, the DDA negotiation will be finalized in foreseeable future. The government should immediately map out a wide range of short-term and long-term steps in preparation for the WTO`s new regime to minimize the impact of the implementation of market openings by strengthening competitiveness of the farming industry.

The government should make efforts not to give the international community an impression that Korea is anti-WTO and anti-free trade. Korea, which is dependent heavily on exports, should comply with free trade orders led by the WTO to survive fierce international competition.