Korea-U.S. FTA

Obama would submit the Korea-U.S. FTA to Congress next year?

Yonhap News Agency reports that an aide to the Obama campaign said Saturday that a President Obama would submit the trade agreement with South Korea to Congress early next year, assuming certain preconditions are met: Obama to Submit Korean Free Trade Pact for Ratification in 2009.

U.S. Democratic presidential nominee Barack Obama will submit a free trade agreement (FTA) between South Korea and the U.S. for ratification early next year if he is elected on Nov. 4, his foreign policy adviser said Saturday.

The adviser, Frank Jannuzi, set several preconditions, however, including the "strengthening of the access of American automobile exports to Korea, taking steps to make sure workers who might lose their jobs will get job training and unemployment and health insurance, and solving the beef issue"....

"I will tell you honestly that Senator Obama opposes the Korea-U.S. free trade agreement as it is drafted because he felt it failed to address some key things that need to be addressed," Jannuzi said in a speech to a gathering of Korean-Americans in Annandale, Virginia.

The aide, however, said the Illinois senator's opposition is "not forever," adding Obama supports free trade and that "as president, he will do the things necessary to see its ratification is possible."

Jannuzi singled out the beef issue, saying that it "has mostly been solved but we've got still a little bit more to do. But, if these issues are addressed, I am confident Senator Obama will submit the Korea-U.S. agreement successfully to Congress for its approval and I hope it will happen early next year."

This is a big surprise to me if it's true.  Jannuzi is described in the Council of Foreign Relations biographical sketch at the link as the chief East Asian advisor to Democrats on the Foreign Relations committee, reporting in that capacity to Sen Biden.

GNP would like to ratify the trade agreement this year

 

National Assembly.  Source: BBC.

South Korea's governing Grand National Party (GNP) would like to ratify the trade agreement with the United States this year, and is only waiting until the National Assembly's Foreign Affairs, Trade, and Unification Committee completes an audit of the Foreign and Trade Ministry, says Committee Chair Park Jin: GNP Hope Korea-U.S. FTA Will Be Ratified Soon.  The story implies that ratification could take place before the U.S. Presidential election.

...The FTA bill was laid before the committee in February, during the final days of the 17th National Assembly, but it lapsed automatically when it was not ratified before the deadline. The government submitted the bill again to the 18th National Assembly.

“Due to the recent economic slowdown, the U.S. is beginning to favor protectionist policies and the FTA is being pushed from the priority list. Especially, when the Democratic candidate Senator Barack Obama gets elected as the next U.S. president, the U.S. is likely to push for renegotiation in automobile trade and introduction of the Trade Adjustment Assistance (TAA) Program,” said Park....

The world financial crisis reaches Korea

Emmanuel Yujuico at the International Political Economy Zone: Did South Korea Not Learn Its Lesson?.

Blaine Harden of the Washington Post: South Korea to Give Banks $100 Billion In Loan Guarantees. Move Aims to Boost Market, Currency.  Kyung Bok Cho and Saeromi Shin report that South Korea's Won Gains on Financial Rescue; Bank Stocks Rise .

U.S. Approves Visa Waiver for Korea!

On Friday the Bush Administration announced that visa waivers would be extended to seven more countries, including South Korea: Bush: South Korea, six others, get visa waivers:

US President George W. Bush announced Friday that citizens of South Korea and six other US allies would enjoy visa-free travel to the United States beginning about one month from now....

The Dong-A Ilbo editorial writer thinks its about time ([Opinion] U.S. Visa Waiver Program ):

The inequality in travel visas between Korea and the United States will be removed soon. U.S. President George W. Bush has announced Korea’s inclusion in the U.S. visa waiver program, allowing Koreans to travel to the United States for up to 90 days visa-free from January at the latest. Since 1981, Korea has allowed Americans to visit Korea with no visa for 15 days and extended the period to 30 days in 1999. Thus the inclusion of Korea in the U.S. visa waiver program is a welcome measure that properly reflects the longstanding Korea-U.S. alliance.

The U.S. visa policy toward Korea has been somewhat offensive. Washington has long included Japan and Singapore among 27 countries in the visa waiver program, while excluding Korea for its high rate of visa rejection. No matter what the criteria are, Koreans suffered discriminatory visa treatment. Whenever long lines for visa applications formed at the U.S. Embassy in Seoul, the favorable impression of the United States in the eyes of Koreans eroded. It is also a matter of national status and pride in that visa exemption status means Koreans are considered eligible tourists with no danger of illegal stay....

WTO's Korean Trade Policy Review

The WTO examines member country trade policies periodically, and reports the results in trade policy reviews.  It released its 2008 Korean Trade Policy Review last week: Trade Policy Review: Republic of Korea. 

The International Centre for Trade and Sustainable Development (ICTSD) reported on the review: Korea TPR: Sound Fundamentals, but Further Reform Needed to Sustain Growth.

Trade Agreement Submitted to National Assembly

From KBS World Radio(KORUS FTA Bill Submitted to Assembly):

The Ministry of Foreign Affairs and Trade said Wednesday that it submitted a bill on a free trade agreement (FTA) with the United States to the National Assembly for approval....

Foreign Minister Yu Myung-hwan told lawmakers on Tuesday that Korea should ratify the FTA first in case the U.S. calls for renegotiations....

BSE and U.S. Beef Exports

Beef display in Korean store.  Source: Jung Yeon-je via Boston Globe

In 2003 the U.S. was the largest beef exporter in the world. In 2004, after bovine spongiform encephalopathy (BSE) was found in a Washington State dairy cow of Canadian origin in late 2003, she wasn't.  Here's what happened:

Ratify now, or wait?

Korean National Assembly building in Seoul.  Source: Wikipedia

The Hankyoreh reports on a debate within the ruling Grand National Party (GNP) leadership about when to ratify the trade agreement.  Some what to do it before the U.S. election, others want to wait:: GNP stands divided on free trade agreement. The article suggest a difference between the national party leadership, and the party's leadership within the National Assembly. 

The national party leaders want to wait until after the U.S. election in order to provide more time to develop a transitional plan for Korean farmers and fishermen who may be hurt by lifting the trade restrictions, and to avoid ratifying a deal the U.S. might abandon if Obama wins the election.

Party leaders from the National Assembly want to move now to lock in the agreement and make it harder for the U.S. to seek changes in its automobile provisions.

No Action in Congress This Year

Troy Stangarone of the Korea Economic Institute in Washington D.C. doesn't think Congress will act on the trade agreement this year: KORUS FTA Lost in Financial Crisis Shuffle:

As Congress struggled to pass a bailout measure for the U.S. financial industry, the fast-fading hopes for the passage of the KORUS FTA this year were lost in the shuffle of the deepening economic crisis in the United States. As Insight went to press, it was unclear if Congress would be able to pass the president’s financial bailout plan or what the prospects were for the U.S. economy in the near term future.

However, at the end of September, the Congress did pass a continuing resolution (CR) to fund the federal government until March of next year. With Congress’s budgetary responsibilities fulfilled until the next administration, there is no strong reason for Congress to remain in session after the November elections, barring an increasing deterioration in the U.S. economy and financial markets.

Despite the majority of current U.S. economic growth being attributable to increased exports, it is politically unlikely that Congress would take up any trade agreement during a time of continuing economic deterioration. Of note for the agreement’s long-term prospects, continued skepticism was expressed on Capitol Hill about the potential for the KORUS FTA to address the concerns of the automobile industry at a September hearing on the imbalance in U.S.-Korea automobile trade. However, the recently passed CR did include funding for up to $25 billion in low interest loans to help the automobile industry upgrade plants and move towards more fuel efficient vehicles. Measures helping to improve the U.S. automobile industry’s position could help to alleviate concerns within the industry regarding the agreement.