13) US-KOREA FREE TRADE
DEAL SPARKS CONTROVERSY
(The following
article is from the
April 16-30, 2009, issue of People's Voice, Canada's leading communist
newspaper. Articles can be reprinted free if the source is credited.
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By Sean Burton,
PV South Korea correspondent
In April
2007, South Korea and
the US reached a controversial free trade arrangement after fourteen
months of negotiations. Unions and other organizations representing
South Korean workers and farmers, supported by the local social
democrats, consider the deal a threat to South Korean jobs, and their
industries as a whole. Similar hostility was expressed last year in the
massive dispute over US beef imports, directly related to the South
Korean government's desire to improve its trade standing with the US.
This
particular agreement, the
KORUS FTA, would be the first between the US and a major East Asian
economy, and the largest overall since NAFTA was signed in 1992. This
is by far South Korea's largest free trade deal. All that remains is
for both countries to ratify the agreement.
South
Korea's government has
moved significantly to the right since April 2007, and is keen to
implement KORUS FTA. But the parliament has had to postpone the
ratification, fearing more large-scale anti‑government protests.
Meanwhile, disputes in the US Congress initially delayed the
ratification. With the onset of the global economic crisis and the
election of Barack Obama, further delays were inevitable. Still, a
report to Congress early in March stated that the government would no
longer delay the ratification of FTAs with Korea, Panama, and Colombia.
But the
future of the agreement
is uncertain. Ron Kirk, the U.S. trade representative‑designate, told
the U.S. Senate Finance Committee that the present agreement with Seoul
"simply isn't fair, and if we don't get that right we'll be prepared to
step away from that." The Obama administration has already begun taking
steps, however limited, to "protect American jobs." This FTA is likely
perceived as a potential threat to those policies. Even Obama himself
has said the deal is flawed.
Naturally,
Kirk's statements
have worried the leaders of South Korea. The first reaction from the
presidential office here was that Kirk simply couldn't represent the
official position of the U.S. government. The phrasing of that
announcement indicates a great deal of hurt, as though saying, "We have
been great friends for so long! How could you do this to us!?"
Supporters of the FTA claim that the deal shouldn't be abandoned "just
because a new administration has stepped in". That is a weak argument.
What is the point of a new administration if it does not reevaluate
widely despised policies of the preceding one?
The biggest
concern seems to be
the auto industry. Instead of talking about defending American jobs in
hard times, KORUS FTA supporters talk only about how U.S. auto
producers are "losing their competitive edge" against "better" Korean
manufacturers. In other words, jobs do not matter, only profitability.
If the companies aren't doing well, they say close up shop. A Chosun
Ilbo newspaper editorial also argued that a renegotiation could spark
more large protests akin to the beef import demonstrations last year.
And so it should! The "delicate" balance achieved in trade negotiations
does not change the fact that it's still a raw deal for South Koreans.
The Korea
Herald reported
recently that Kirk offered more "positive" statements regarding the
FTA. South Korean analysts claim that his earlier comments were a mere
"formality" to show his loyalty to Obama. The FTA, they say, is in
principle a good thing for the economy, but with a few "problems" to be
worked out in dialogue.
But where
are the voices of the
workers and farmers, the ones who will feel the impact of the deal? It
is one thing for a newspaper or a member of parliament to say that
certain groups in society strongly oppose the deal, but another to
actually hear from these people.
Acting in
the interests of big
money, the South Korean government does not care that public opinion is
largely against them, even if half a million people take to the streets
in protest; that's what the police force is for.