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The rough content of the free trade agreement between South Korea and the United States has been carried in Korean and English on the homepages of South Korea's Ministry of Foreign Affairs and Trade and of the Office of the U.S. Trade Representative. But there are subtle differences. Over some clauses, each side emphasizes some points and never mentions others, depending on how advantageous or disadvantageous those points are to it. Experts say each side wants to show its own people that the agreement is to their advantage.
¡ß Subtle points concealed
In its report on the conclusion of the FTA, the USTR makes no or passing mention to some points where it made concessions. On agriculture, the USTR said, "Historically, Korea has been one of the most protected agricultural markets in the world." But it does not mention rice and beef, the matters of biggest concern during the negotiations. Instead, it highlights its successes. "Under the agreement, over US$1 billion worth of U.S. farm exports to Korea will become duty-free immediately. Most remaining tariffs and quotas will be phased out over the first 10 years the agreement is in force." In a press conference on Monday, Korean Trade Minister Kim Hyun-chong stressed that the two sides agreed to exclude rice from the concession lists and phase out tariffs on beef over 15 years. ¡°We will maintain current tariffs on oranges in harvesting seasons, beans, potatoes, powdered milk, and honey in light of the delicate nature of our agriculture."
Nor does the USTR report mention debate over goods from the inter-Korean Kaesong Industrial Complex in North Korea. During the negotiations, the two sides agreed to establish a committee that would designate so-called outward processing zones, including possibly the Kaesong complex. But the USTR makes no mention of this, despite making a concession that leaves room for the goods to be eventually included.
¡ß Accentuating the positive
In disclosing the agreement, the two countries focus on the points that reflect the demands of their respective political circles and interest groups. In the case of cars, the Korean government focused on the abolition of tariffs on imported Korean cars immediately or in three years. But the USTR stressed: "We agreed to eliminate discrimination in engine displacement-based taxes, long a significant impediment to market access in Korea." It said the agreement ¡°contains strong commitments to addresses the specific standards-related concerns raised by U.S. auto manufacturers."
With regard to the protection of American investors, the USTR said, "The agreement ensures that U.S. investors in Korea will have the same rights and enjoy equal footing with Korean investors." The Korean government concentrated on quite different issues. It emphasized that in connection with investor-to-state dispute (ISD) cases, real estate and tax policies will be excluded from lists subject to "indirect expropriation," for which American investors can be compensated when state policies unintentionally infringe the interests of American investors.
In the service sector, the USTR predicts that the FTA will expand market access and investment opportunities in a number of service sectors, including telecommunications and e-commerce. It also says the agreement will boost market opportunities for U.S. audio-visual products. But this elides the U.S. side's dissatisfaction over a failure to prize the Korean service market, including educational and medical services, open further.
(englishnews@chosun.com )
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