U.S.: Korea‘s Status as Developing Nation in Agriculture Not to Be Acknowledged

The U.S. government denied South Korea’s status as a developing nation during the Doha Development Agenda (DDA) agriculture negotiations yesterday at the World Trade Organization (WTO) Conference, while demanding that it fully open its markets.

This raises the gloomy prospect that Korea may no longer be able to enjoy benefits as a developing country with regards to market liberalization in agriculture.

The announcement was made by the U.S. Commerce Department along with its Trade Representative in a video interview with the Korean press. The interview was simultaneously conducted yesterday both at the U.S. Information Service in Namyoung-dong, Yongsan-gu, Seoul and in the U.S. State Department in Washington.

The video interview was conducted ahead of the Fifth Ministerial conference of the WTO in Cancun, Mexico, which is scheduled to be held from September 10 through September 14.

Shaun Donnelly, acting Assistant Secretary of the Bureau of Economic and Business Affairs at U.S. Department of State, said in the interview, “As Korea has been the largest beneficiary of world trade liberalization, it should assume due responsibility.”

“The DDA is a package-deal negotiation on overall economic issues”, said assistant U.S. Trade Representative for WTO Affairs Dorothy Dwoskin, noting, “Exceptions in a specific area, such as agriculture, cannot be accepted.”

Dwoskin demanded Korea open its agricultural markets, arguing, “Korea cannot earn overall economic benefits as long as it holds fast to a specific area (agriculture).”

During the interview, an official at the U.S. Commerce Department, speaking on condition of anonymity, said, “Have you ever been to a developing country such as Mali or Honduras? Who, then, do you think, is going to believe that Korea is a developing country within the membership of the Organization for Economic Cooperation and Development (OECD)?”

The upcoming Ministerial Conference of the WTO is widely believed as a watershed in DDA talks shaping a framework for global trade.

Eun-Woo Lee libra@donga.com