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    Korea
     Apr 3, 2007
Page 2 of 2
All fired up over Korea-US free trade
By Donald Kirk

or otherwise alter the agreement as long as members have 90 days in which to conduct their "review".

It's still possible that Congress will reject the agreement by a majority No vote, but the sense among negotiators is that the deal will sail through by a narrow margin. It's also expected to win begrudging approval from South Korea's National Assembly despite inevitable criticism from the opposition Grand National



Party, a conservative grouping that has regained much of its traditional power while Roh's popularity has fallen precipitously in recent months.

US Democratic leaders, though, are sure to wage a non-stop battle against the FTA as it now stands. They signaled their views in a letter last week to the US special trade representative, Susan Schwab.

The language of the letter evoked memories of the Cold War between the US and the Soviet Union by its use of the term "iron curtain", the descriptive phrase popularized by British leader Winston Churchill when he remarked in a speech at Westminster College in Fulton, Missouri, on March 5, 1946, that "an iron curtain" had descended over Europe as a result of the Soviet Union's takeover of Eastern European countries after World War II.

The agreement, said the letter, is "completely inadequate in the face of Korea's long-standing iron curtain to American manufactured products". The signers, led by Nancy Pelosi, the San Francisco congresswoman who is now the Speaker of the House of Representatives, was also signed by two other influential Democratic members of Congress, Charles Rangel, chairman of the House Ways and Means Committee, and Sander Levin, chairman of the Ways and Means Subcommittee on Trade.

They singled out for special criticism the yawning gap between the export of more than 800,000 Korean motor vehicles to the US last year compared with 4,000 US vehicles sold in South Korea. The disparity in motor vehicles alone, said US legislators, is $11 billion - 82% of the total US deficit in trade with South Korea.

Schwab vowed that the US side would not accept any deal that failed to provide "comprehensive market access to US business", including the automotive sector, but US manufacturers have long cited a range of non-tariff barriers, including difficult inspections, that make it almost impossible to compete effectively in the Korean mass market.

If anything, differences were still more contentious in such areas as textiles, beef and, above all, rice. Ever since the negotiations began 10 months ago, farmers, spurred on by leftist students and other activists, have been demonstrating daily against moves to open up the $9 billion South Korean rice market, charging that any deal would strip them of their only means of survival.

The fact is that the price of rice in South Korea is pegged at four or five times its actual value, and the government props up the market by buying surplus rice, several hundred thousand tonnes of which is shipped each year to North Korea, which is suffering from starvation and disease as a result of poor harvests and terrible economic policies. The whole issue of the price of rice, however, is deemed so "sensitive" in South Korea that the government more or less ruled it out of any FTA except as a topic that might be considered "at a future date" - if ever.

The beef issue hit the headlines after South Korean customs officials barred the first three shipments after partially lifting a ban imposed on US beef in response to the diagnosis of "mad cow" disease in a US cow more than three years ago. Inspectors said that X-rays had discovered tiny bone chips in beef that was supposed to have been entirely bone-free, and ordered the beef shipped back to the US. American negotiators demanded reinstatement of the export of US beef, bone-free or not, to South Korea, one of the largest markets for US beef until the ban.

Demonstrators, typically carrying candles in paper cups, have clashed with police during the negotiations and marched through central Seoul, singing songs and shouting slogans denouncing Bush and the US-Korean alliance.

Farmers' groups and industrial workers have joined anti-FTA rallies, while radicals have seized on the FTA as another reason for opposing the US-Korean military alliance.

One issue that appeared muted, however, was that of including products made by South Korean companies in the special industrial zone at Kaesong, just across the line inside North Korea, as manufactured in the South. US negotiators adamantly rejected that demand. Demonstrators overlooked that issue while flaunting placards and banners, in Korean and English, saying "Stop the Korea-US FTA" - one of the milder slogans - along with denunciations of US forces.

Journalist Donald Kirk has been covering Korea - and the confrontation of forces in Northeast Asia - for more than 30 years.
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