Korea's FTA Policy and its Position for a Japan-Korea FTA

초록

The concerns of Korea’s business sector over the FTA are increasing, as the negotiation with Japan has accelerated since mid-2004. It is known that the two countries are scheduled to start negotiations for tariff concessions in the second half of 2004. The FKI, which had supported a Korea-Japan FTA, is now petitioning the government of Korea to slow the process toward concluding the FTA. Academia and labor unions also have displayed opposition. In mid-May 2004, during the third round of negotiations for a Korea-Japan FTA, the Korean Confederation of Labor Unions (KCFL) physically demonstrated against a Korea-Japan FTA in front of the government complex in Seoul. The recent growing trend of negative positions against a Korea-Japan FTA seems to be related to the following aspects. First, while business executives delivered pro-FTA positions before the start of negotiations, recognizing economic gains coming from various forms of closer economic cooperation, now trade managers are beginning to show concern over the FTA, focusing on weakening price competitiveness under the FTA and disadvantageous positions in market access. Second, they might deliver strategic comments in order to minimize market liberalization in the FTA, although they accept the necessity for the FTA. Third, they may expect government compensation or support for affected industries, as the Korea-Chile FTA did for agriculture. Fourth, generally, opposition to the FTAs may be covered more by the press than support for them.