Lee Seeks Support of US Businesses for FTA Approval
Written by Meenaa on Wednesday, November 19th, 2008
Lee Seeks Support of US Businesses for FTA Approval
South Korean President Lee Myung-bak Sunday sought support of U.S. businesses for the rapid ratification of the South Korea-U.S. free trade agreement to help boost bilateral trade and investment.
“We need to rapidly ratify the South Korea-U.S. FTA to develop bilateral trade and investment and strategic economic cooperation,” Lee said during a meeting with Thomas J. Donohue, president of the U.S. Chamber of Commerce here, according to Yonhap News.
Lee Saturday attended the first G20 economic summit calling for international cooperation in monetary and fiscal policies and cautioning against any spread of protectionism to cope with the U.S.-initiated global financial crisis. He is to attend the annual Asia-Pacific Economic Cooperation forum to be held in Lima, Peru, after stopping in Brazil.
Lee expressed hope that the advent of a new Barack Obama administration in January will help boost spending in the U.S.
The Chief Executive introduced his government’s policy to reduce corporate taxes, regulations and labor strikes, asking for more investment in South Korea by U.S. businessmen.
South Korea’s ruling party is trying to ratify the bilateral FTA with the U.S. in the ongoing parliamentary session, although the reluctant opposition party cites U.S. President-elect Barack Obama’s lukewarm position due to auto trade imbalance.
Seoul and Washington signed the free trade deal, the biggest for the U.S. since the early 1990s, in April last year.
U.S. President George W. Bush urged Congress last week to ratify the pending free trade deals with South Korea, Colombia and Panama by the end of the year.
Congress is set to reconvene for a lame-duck session this week.
Bush made the remarks while advocating free markets as a way of coping with the current global economic crisis.
Obama proposed that the struggling U.S. auto industry should benefit from the $700 billion bailout package that is mainly for the falling U.S. financial industry, while Bush opposed the idea, fearing any aid to the auto industry would have a domino effect on other industries.
Reports said Bush and Obama may strike a deal for the passage of the pending free trade deals and subsidies for the auto industry.
Earlier in the day, Lee told a new conference in Washington that he supports Obama’s proposal for subsidies to the struggling U.S. auto industry, saying, “Reviving the U.S. auto industry will be helpful to South Korea because that allows South Korea room for exports of automobiles and parts,” he said.
Automobiles constitute a very small portion of the Korea-U.S. FTA, he said, noting the U.S. has strength in the service industries.
He hinted at the possibility of South Korea ratifying it before the U.S.
“Most countries tend to ratify their FTAs with the U.S. before the U.S. does it,” he said. “We need to change 23 or 24 laws even after the ratification of the FTA to make it effective, but the U.S. Congress can vote yes or no only, and it takes effect immediately after the ratification under the fast-track system,” he said.
The Korea Times
2008-11-17
