US Congress takes first step toward FTA ratification

The U.S. Congress unanimously extended Wednesday the Generalized System of Preferences to rush the ratification of the bilateral free trade agreement with Korea.

This was the first step of a plan agreed by Democrats and Republicans to pass the accord last month, and can be interpreted as preparation for ratification. Korea’s National Assembly, however, has made little progress and not even set a date to introduce the bill for ratification.

Fears are thus growing that Korea might not be able to introduce the bill at all until its U.S. counterpart ratifies the agreement.

The U.S. Congress put the Generalized System of Preferences, which expired at the end of last year, to a vote. The system exempts or discounts tariffs on goods that the U.S. imports from developing countries.

Senate Democratic and Republican floor leaders agreed to pass a bill to extend the Trade Adjustment Assistance and pass the free trade deal when the session begins in September before they adjourned early last month. Barring any change, Congress is likely to pass the agreement, the Generalized System of Preferences, and the Trade Adjustment Assistance within this month at the earliest or next month at the latest.

The Korean parliament, however, has failed to set the date on introducing a bill for ratification due to conflict between the ruling and opposition parties.

Nam Kyung-pil, chairman of the National Assembly`s Unification, Foreign Affairs and Trade Committee, gave little meaning to the Generalized System of Preferences extension, saying, “It`s a basic step to pass the Korea-U.S. FTA.”

january@donga.com yhchoi65@donga.com