U.S. breakthrough on FTA ratifying
¼ö¾÷ÀÏ : 2011-08-05

 

U.S. breakthrough on FTA ratifying
But GNP and opposition still at loggerheads on vote at National Assembly

ÇÑ·¹Ì ¾ç±¹ ±«·ÓÈ÷´ø '¶ß°Å¿î °¨ÀÚ' Çѹݵµ·Î…

August 05, 2011
U.S. Senate leaders ended an impasse over the stalled ratification of the Korea-U.S. free trade agreement on Wednesday, agreeing to vote after their August recess on benefits for workers who lose their jobs because of overseas competition, then take up three pending trade deals, including the Korus pact.

Korea welcomed the move but said the FTA could have been passed before the recess.

Senate Harry Reid, the majority leader, and Senator Mitch McConnell, the Republican leader, agreed that after Congress returns to work, lawmakers will consider “a bipartisan compromise on the Trade Adjustment Assistance program, followed by passage of the three FTAs” with Korea, Colombia and Panama.

Ratification of the three FTAs was snagged by disagreements between Republicans and Democrats on the Trade Adjustment Assistance program.

The Office of the U.S. Trade Representative and Republican House Speaker John Boehner praised the compromise, signaling that all sides concur on the process. The one-month recess will end on Sept. 6.

“The U.S. Congress did not live up to our expectations by not processing the Korea-U.S. FTA before the recess,” the Ministry of Foreign Affairs and Trade said in a statement. “But we expect the Korea-U.S. FTA to be able to be ratified after the opening of the U.S. Congress, based on the strong will of the U.S. administration and the Senate leadership.”

The bill, signed in 2007 and revised last December, has yet to be ratified by the National Assembly and there are substantial disagreements between the ruling party and the opposition.

An extra session will be held at the National Assembly this month, and the ruling Grand National Party said the pact should be ratified no later than in Washington.

The opposition Democratic Party, however, says the extra session should be focused solely on legislation to improve people’s lives.

The DP calls the pact “unfair and unfavorable” for Korean industries, and is calling for renegotiations with the U.S.

Chun Jung-bae, former floor leader of DP, said in a post on a U.S. Congressional magazine’s Web site Wednesday that the FTA isn’t good for the U.S. either, saying that the expectation that it will create tens of thousands of jobs is a “rosy fantasy” and “a fabrication” made by multinational corporations that have no allegiance to either country.

Chun said the FTA would worsen the overall U.S. trade deficit and eventually trigger more job losses in the U.S.

He also claimed the investor-state enforcement mechanism will undermine national sovereignty in both countries by empowering foreign investors to skirt domestic regulations, and claimed that up to 65 percent of the products to be sold under the agreement will be neither Korean nor American.

“It is my sincere hope that a fair trade agreement can be negotiated between our countries in the future that would benefit both of our economies and thus help advance the strong alliance between Korea and the U.S.,” Chun said. “The deal that the U.S. Congress is expected to consider in the coming weeks is not such an agreement.”


By Moon Gwang-lip, Bloomberg [joe@joongang.co.kr]

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