Export Occupies 30 percent among GDP…Korea Should Avoid Trade Conflicts

In light of the new trend in which U.S., Japan, China, and EU who are claiming for the protectionism of domestic market, the government is preparing a countermeasure that can prevent unnecessary trade conflicts.

The government plans to apply some flexibility depending on the situations of each country, but they will cope against cases that violate the international standards by appealing the cases to the World Trade Organization (WTO).

Korea has an economic system in which export occupies more than 30 percent of the gross domestic product (GDP). Thus, if there is trade conflict that cause reduction of export on major products, the domestic employment situation will be strongly influenced by the conflicts.

Minister of Commerce, Industry and Energy (MCIE), Chung Jae-Sik said, ``it is important for Korea to go with the flow in the process of trade negotiation. But, for the sensitive fields that are closely related to the benefit of Korea, negotiation is very important.``

Assistant Minister of MCIE Lee Suk-Young said, ``trade conflicts tend to be led by the advanced countries’ economic situation. And for some products, such as steel, there is more supply than demand. Thus far, it is difficult for Korea, a country occupying only 2 percent of world trade market, to lead the international trade negotiations.``

Exampling the garlic conflict, in which different ministries tried to take charge of their roles exasperating friction against one another, some pointed out that the internal tension among different ministries causes failures in the trade negotiation.

Kim Kyung-Won, the chief researcher at the oversea economy department in Samsung Economic Research Institute, said, ``Korea may be in a dilemma in which the two giants, U.S. and China with different opinions, force us to take one position. So we need to react delicately in the diplomacy.``

Kim Sang-Chul sckim007@donga.com