‘Additional FTA Talks Could Benefit Korea’

‘Additional FTA Talks Could Benefit Korea’

By Yoon Ja-young
Staff Reporter


Korea may gain from its additional negotiations with the United States over their free trade agreement (FTA), regarding such issues as the pharmaceutical industry or visa waiver program, said a senior U.S. economist.

``The KORUS FTA was a very intense negotiation, one of which both sides knew what they wanted to get from the start,'' said Jeffrey Schott, a senior fellow at the Peterson Institute for International Economics, at a lecture organized by the Institute for Global Economics in downtown Seoul, Thursday.

``The agreement was not perfect but the common objectives of the two parties were so close that it came out as win-win.''

Regarding the additional negotiation issues, Schott said Korea could gain from the pharmaceutical sector. ``There are procedural requirements for explanation on labor and the environment, a few additional rulemaking editions, some of which could actually be more favorable to Korea than the original text.'' The pharmaceutical industry, for example, could be closer to a Korean viewpoint than Bush's, according to Schott.

``From what I understand, there were no changes requested in any substance of provisions on liberalization in this agreement.''

He emphasized that the deal is a win-win. ``Labor unions in both countries aren't happy with the deals, and one of the two can't be right. I think both of them are wrong.'' He said it's understandable why U.S. unions are concerned, but added that the problem of the U.S. auto industry stemmed from the too generous labor contracts signed 20 years ago.

He said Senator Hillary Clinton made a political mistake when she opposed the KORUS FTA. He added that her comments were severely criticized by U.S. newspapers.

He said the treatment of production at the Gaesong Industrial Complex was a very thoughtful compromise. He explained that the two countries had a common objective of promoting security in Northeast Asia and policy reform in North Korea, though they pursued different techniques. He highly evaluated the compromise, which left it for future discussion if the situation changes on the Korean Peninsula. ``It made the KORUS FTA a living agreement that can expand as favorable conditions are created on the Korean Peninsula,'' Schott said.

chizpizza@koreatimes.co.kr