American observers predicted Thursday that a controversial North Korean industrial complex would not be covered in a free trade agreement (FTA) between South Korea and the United States.
One expert questioned whether the nations even have the will necessary to conclude the controversial accord.
Speaking at a seminar sponsored by the Korea Economic Institute in downtown Washington, Balbina Hwang and Jeffrey Schott said the issue of Kaesong industrial complex is a non-starter in the trade negotiations.
"It won't be included because the U.S. negotiators would not be able to sell the agreement to the Congress," said Schott, a senior fellow with the Institute for International Economics (IIE).
Hwang, senior policy analyst at the Heritage Foundation, was more blunt.
"It will be impossible," she said.
South Korea and the United States began official FTA talks this week, combing through each other's proposals to sort out consensus and differences. Agriculture, automobiles, pharmaceuticals and regulatory transparency have been highlighted as key differences.
Including products made in the Kaesong industrial complex, a zone located just north of the inter-Korean border, in the FTA is one of Seoul's strongest demands that Washington's negotiators have not yet agreed to formally address.
The complex houses South Korean manufacturing plants employing North Korean workers, an idea borne out of belief that combining the South's capital with the cheaper labor of the North would produce price-competitive export items.
The U.S. questions labor practices there and suspects the wages given to the workers are actually going to North Korean leaders.
"There are great concerns about some of the abusive practices of North Korean regime," Schott said. "It would be very difficult to include benefits in an FTA for North Korea while these practices continue."
Kaesong would be a "lightening rod" for all U.S. concerns about the Pyongyang regime, he argued.
Hwang said by demanding Kaesong's inclusion in the FTA, South Korea was forcing the U.S. make a "dangerous" choice, telling the U.S. to accept both South and North Korea.
"The U.S. is going to say no to everything... say 'neither of you,'" she said.
She went on to question the political will and capital of the two countries to make the FTA negotiations successful.
"Is the political environment in South Korea ready to address the upcoming debate that will ensue?" she asked.
She also pointed out the "quid pro quo mentality" of South Koreans, who demand tangible returns for every concession. Public dialogue frames negotiating differences as U.S. "demands," she said.
Schott disagreed, saying the will is definitely there.
"Countries do not enter into important negotiations, particularly those that have such prominence as the FTA negotiations, without full commitment to finishing the job and concluding an agreement," he said.
"There was more than one year of preparations... before this decision was taken to launch these negotiations. This is much more than any other agreement negotiated by the U.S.," he said.
Schott urged the two countries to look at the long-term.
"The long-term benefits in terms of ensuring prosperity for both our countries are much more important and will be the lasting legacy of the work that our governments are starting this week," he said. Washington, June 8 (Yonhap News)
U.S. experts say Kaesong can't be included in FTA |
