U.S.`s Trade Pressure On Korea

The U.S. has intensified the trade pressure on Korea`s car industry and the other action agenda, following the steel industry.

According to the Ministry for Trade, Ministry of Foreign Affairs and Trade (MFAT), the U.S. demanded to cut down the customs for the imported car to the U.S.`s tax rate (2.5 percent), and to change the car taxation system imposing the tax by the displacement capacity, which has been an actual trade barrier, in the Korea-US Action Agenda Meeting and the fourth Korea-US Auto Consultation Meeting.

And the U.S. called for the appeasement of the noise standard (75 db) during the accelerated driving, the exemption of the application of the automobile bumper standard to the mini-Van, and the ease of some exhaust fumes standards for the diesel automobile.

The U.S. pointed out that the trade imbalance has been deepened. While Korea exported 573,355 cars to the U.S. last year and has increased the exports by 21 percent until April, only 2,500 U.S. cars were sold in Korea last year and the sales has decreased by 30 percent until April.

The Korea side explained the various measures to lessen the trade barrier for the automobile, and declared to keep trying to enhance the imports of the automobile. And the representatives of Korea urged the U.S. to restrain from the exercise of the `safeguard`, saying that if the U.S. government exercises the `safeguard` toward the imported steel, the protectionism will spread in the world.An official of the MFAT told that ``Because the Bush administration is inclined to the `strong U.S.` as seen in the case of the protection of the steel industry, and further the U.S. economy has undergone the slump, the U.S. will take a hard line to the action agenda such as the automobile and the Intellectual Property Right (IPR) protection.

Both parties will examine the progress made in implementing the Korea-US MOU which was agreed in 1998, and will discuss the action agenda such as the IPR protection,

Pharmaceuticals, and the agricultural products on 14th.

The US delegation is led by Ms. Barbara Weisel, Assistant Deputy of the USTR, and consists of officials from the Department of State, Department of Commerce, and other related agencies. The Korean delegation is led by Mr. Kim Chong-hoon, Director-General of the Bilateral Trade Bureau of the Ministry of Foreign Affairs and Trade, and consists of officials from the Ministry of Finance and Economy, Ministry of Justice, Ministry of Commerce, Industry and Energy, Ministry of Environment, Ministry of Construction and Transportation, Ministry of Information and Communication, and Ministry of Culture and Tourism.

Kim Sang-Chul sckim007@donga.com