Posted on : Jul.15,2006 12:46 KST Modified on : Jul.17,2006 08:47 KST

Talks for a proposed free trade agreement between South Korea and the United States ended hours earlier than scheduled, as Washington boycotted planned discussion sessions in protest against Seoul's drug-pricing policies. The unilateral decision represented to some a continuance of the rigid negotiating stance, and even arrogance, which the U.S. has pursued in pushing for a free trade pact with one of its closest Asian allies.

It would be premature to conclude that the entire talks have broken down just because a few sessions were cancelled. Such unexpected and extreme moves are commonplace in international negotiations. Still, two important lessons have been learned.

One is that the U.S. remains adamant on such sensitive issues as the opening of the pharmaceutical, textile, and automotive markets, along with refusing to recognize products made in the joint inter-Korean Kaesong (Gaeseong) industrial complex, located just North of the DMZ, as South Korean.


The other lesson learned is that the South Korean trade officials are careful not to easily concede what the U.S. wants in the talks. The mounting voices of opposition and concern expressed by the public against the free trade talks might have hampered their negotiating moves.

The earlier-than-scheduled closure of the second round of talks should come as a burden for government officials, who have spearheaded the bilateral trade deal. What they have to do at this moment is review what went wrong. The major reason for the trade debacle is that the government has been hasty and poorly prepared in pushing for a free trade deal with the world's largest economy. It did not know what the U.S. would demand, nor did it take time to listen to what its own people want.

Now, all options should be on the table. It might take much longer than the time frame proposed by Washington. Even the negotiation itself could be suspended if both sides cannot find common ground. Though belatedly, the government has to take time to turn its ears to the voices of the people.

As trade minister Kim Hyun-chong once said, the government should seek a free trade pact with Washington based on "public consensus." However, this could be reduced to hollow words if the government is not willing to listen to the people.

Though both sides agreed upon not publicizing their basic negotiating stances on each area for the next three years, the South Korean government needs to reveal to the Korean people exactly what they are pursuing. At the very least, it needs to be as open as the U.S. government is with its congressmen and trade officials.



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