Lingering opposition to FTA with US

Korea’s car exports to the European Union recorded 451 million U.S. dollars in July, up 84 percent from the same month last year. Despite an increase in the price of Korean pork, imported frozen pork from Belgium dropped 32 percent from 1,180 won (1.12 dollars) per 100 grams to 800 won (76 cents), to the relief of Korean consumers. These are the effects of the free trade agreement with the EU that took effect July 1.

By contrast, the free trade accord with the U.S. has yet to pass the National Assembly though it was concluded in June 2007, when negotiations for the Korea-EU free trade agreement had yet to begin. At the time of the conclusion of the Korea-U.S. agreement, 11 state-run think tanks and government agencies said that if the pact takes effect in 2009 and productivity sufficiently improves as a result, annual GDP growth will rise an additional 0.6 percentage point or up to 80 trillion won (76 billion dollars), and up to 336,000 new jobs will be created over the next 10 years. The U.S. has increased direct investments in countries with which it has concluded free trade deals, according to a 2006 report by the Organization for Economic Cooperation and Development.

Korea has more to gain from the agreement with the U.S. reached in December last year as well. The main opposition Democratic Party is claiming that the country will suffer losses, however, saying, “The Lee Myung-bak administration’s renegotiation has broken the balance of interest.” By contrast, the Korean automotive industry said it "eagerly awaits ratification of the pact.” Despite this, certain groups, including the Democratic Party, particularly oppose the free trade agreement with the U.S. Those seeking to follow in the footsteps of former President Roh Moo-hyun also oppose it though it was considered Roh’s achievement. They apparently do so to differentiate themselves from the ruling Grand National Party and torment the Lee government.

Korea’s per capita income exceeded 10,000 dollars in 1994 but has failed to reach the milestone of 20,000 dollars in the 16 years since. The Korea-U.S. agreement is expected to not only boost exports but also improve Korea’s economic and social systems to the levels of advanced countries. Despite its economic decline, the U.S. is the world`s most powerful country in science and technology, the service sector and smart power. Just as the currency swap deal between Seoul and Washington at the time of the global financial crisis was a great help to the Korean economy, the bilateral free trade agreement will serve as insurance for Korea in times of uncertainty and lay the groundwork for the country to join the ranks of advanced countries.

Obstructing the effectuation of the agreement is tantamount to hindering economic growth, job creation and the attainment of 30,000 dollars in per captain income as well as the strengthening of the bilateral alliance. The groups opposed to the trade pact include those that object to the four-river restoration project and call it a grand canal project, and those who denied North Korea’s involvement in the sinking of the naval vessel Cheonan last year. The government and the ruling camp should stop being swayed by such forces. For their part, the South Korean people should also come together to ratify the free trade agreement with the U.S. as soon as possible.