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The U.S. Congress has written to the Bush administration urging wholesale changes in the free trade agreement with Korea, especially on cars. Charles Rangel, chairman of the House Ways and Means Committee, and Sander Levin, chairman of the trade subcommittee, wrote to U.S. Trade Representative Susan Schwab last Thursday to call for renegotiations of the FTAs with Korea, Peru, Panama, and Colombia, the Korean Embassy in Washington, D.C. said. The letter urged additional negotiation with Korea on systemic barriers in automobiles, industrial products, agricultural and service markets.
The letter also said that despite suggestions from both Democratic and Republican parties, the U.S. administration has failed to make Korea open its auto market. Congress had asked the U.S. administration on March 1 to demand that Korea open its car market. Washington is expected to make demands on South Korea according to a new trade policy that prevails on countries with which the U.S. has concluded FTAs to abide by international labor and environmental standards. In the wake of the letter, renegotiation will likely deal not only with labor, the environment and medicines, but also with cars and other sectors.
However, while the letter elaborates what changes Congress wants in the FTAs with Peru and Panama, it only mentions the need to revise automobile clauses with Korea in a footnote. Some therefore predict U.S. calls for a renegotiation with Korea will not be very loud. A senior South Korean government official said, "Our official position is an absolute no to a renegotiation. There is no room for reconsideration for sectors other than labor and the environment." Another official said, "We believe that the U.S. Congress demand for a renegotiation on automobiles is a strategy to get its way in labor and environment."
Yet some worry that if the U.S. officially calls for a renegotiation, the implementation schedule for the Korea-U.S. FTA -- including the release of the letter of agreement slated for May 21-25 and the official signing slated for late June -- could hit a snag. The letter of agreement will be released as scheduled, but without the parts that the U.S. side is demanding a renegotiation on,¡± a Foreign and Trade Ministry official said. ¡°It will be difficult to delay the signing until after July 1, when the deadline for the U.S. administration's Trade Promotion Authority expires." The TPA allows the Bush administration to fast-track trade deals without congressional revisions.
(englishnews@chosun.com )
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