Negotiations by South Korea and the United States to sign a free trade accord should cover goods from an inter-Korean economic zone in North Korea, the South's trade minister said Wednesday amid growing skepticism from U.S. officials over the idea.
"During the negotiations, it's very important to discuss about goods made in the Kaesong complex in a direction that the U.S. gives special tariffs on the products," Trade Minister Kim Hyun-chong said in a keynote speech for a meeting of business leaders of the two nations.
The joint industrial park in the North Korean border city of Kaesong is emerged as one of toughest items on the negotiating table for the proposed free trade accord as South Korea requested the U.S. to allow goods from the Kaesong complex to be considered as originating from the South. However, U.S. government officials have been pessimistic over the so-called Kaesong matter, saying a pact would only cover goods from the both nations. "I don't have a lot to say on the Kaesong issue ... in our view the FTA covers the Republic of Korea and the U.S.," said top U.S.
free trade negotiator Wendy Cutler in a statement posted on the U.S. Trade Representative web site on June 5, when the two nations embarked the first round of formal talks in Washington.
During the first round of negotiations, Seoul and Washington failed to make a joint preliminary statement on how to approach the Kaesong-made goods. Second round of talks are due to be held from July 10 in Seoul.
About 15 South Korean companies are now in operations at the Kaesong Industrial Complex, a showcase project of the South Korean government's "Sunshin Policy" of proactively supporting its economically prostate North Korea. By 2012, more than 2,000 companies will be housed at the Kaesong complex, the South's Unification Ministry said earlier.
"If the Kaesong complex is completed, it will hire about one million North Korean workers," Kim said in the speech. "If we take into consideration of their families, more than three million North Koreans will be exposed to the market economy." During the two-day meeting that began on Wednesday, meanwhile, business leaders from South Korea and the United States reiterated their support for negotiations between the two nations to sign a free trade accord amid rising protests here that the pact, if successful, would only benefit the American side. "A Korea-U.S. free trade agreement will bring a positive effect for both sides in terms of economic gains as well as diplomatic alliance," said Cho Suck-rae, chairman of the Korea-U.S. Business Council, in a opening remark for the council's annual meeting in Seoul. Cho is also the chairman of Hyosung Group, a mid-sized family-run industrial conglomerate.
"Entrepreneurs in both nations will make their utmost efforts to help their governments successfully sign the trade agreement," Cho said.
At the meeting, participants will discuss about how to support the talks, the event's organizer said. Later in the day, the council will issue a joint statement to express their support.
But, the meeting is featured with an anti-free trade protest organized by a group of activists from the Korean Alliance Against the Korea-U.S. FTA, saying a potential trade pact would destory livelihoods of Koreans and "transform their home soil into the 51st state of the U.S." One of the thorniest issues on the table will be reducing South Korea's agricultural import barriers, especially for rice, experts said.
Besides, Seoul and Washington have been under pressure from a tight negotiating schedule as U.S. President George Bush's power to negotiate a free trade deal without the Congress' amendments expires on July 1, 2007.
Seoul, June 21(Yonhap News)
S. Korea-U.S. free trade talks should cover N. Korean-made goods, minister says |
