The main opposition Democratic United Party has rejected claims that the domestic political atmosphere surrounding the Korea-U.S. free trade agreement now threatens FTAs with other countries or damages Korea’s international reputation.

Public opposition to the Korea-U.S. trade pact has continued to simmer with DUP chairwoman Han Myeong-sook sending letters to U.S. President Barack Obama and the United States Congress, threatening to repeal the FTA unless changes are made.

The letters claim that the 2010 renegotiation of the Korea-U.S. FTA, which was signed in 2007 under liberal President Roh Moo-hyun, created an unfavorable shift toward U.S. interests.

Han said the contents of the letter would request that Obama suspend “the FTA’s effectuation and reconsider the deal from scratch,” she told party leaders at the National Assembly in Seoul on last Friday.

This stance toward the Korea-U.S. trade agreement may be effecting the negotiations for other trade agreements Korea is currently engaged in with other countries.

Australian Prime Minister Julia Gillard told the Australian Associated Press last week that much of the delay in the completion of an Australia-Korea FTA is caused by the political circumstances surrounding the Korea-U.S. FTA.

Gillard said that the Korean domestic atmosphere “has had consequences for the continued negotiations on the Australian agreement.”

The first round of negotiations for an Australia-Korea FTA began in May 2009 and in 2011 Gillard and Korean President Lee Myung-Bak called for the process to be completed before the end of 2011.

A finalization of the agreement has yet to happen, as Gillard alluded to, due to the political difficulties surrounding the Korea-U.S. trade pact.

Although the trade agreement has already been ratified and signed, it has not been put into effect.

The DUP takes issue with 10 provisions in the Korea-U.S. FTA, with the two of most concern being the inclusion of an investment-state dispute clause and the medicine approval-patent linkage.

The ISD clause, which was in the 2007 agreement, allows investors to settle disputes to domestic court rulings in an international court.

This measure, DUP Rep. Park Joo-sun said means, “The FTA is above Korean law but below U.S. law” and is therefore unfair.

As for Han’s request, Park believes Obama must agree and that doing so will help develop stronger Korea-U.S. relations.

“If the request is denied and the FTA takes effect under the Lee administration, the Democratic Party will take all measures needed for its abolishment once it attains the majority in parliament after the 19th general elections in April,” he said.

The Ministry of Foreign Affairs and Trade would not comment on the possibility of a repeal or on the ongoing negotiations with either the American or Australian FTAs and as a policy do not disclose what is being negotiated with other countries.

However, Dilip K. Das, economics professor at Solbridge University in Daejeon said that Obama was not likely to agree to such a request.

“It is one of those things that is never done,” he said, arguing that the opposition do not really expect it but are exploiting a political opportunity in an election year.

“Straight away it passed my mind that this is political posturing because, firstly, countries do not treat their FTAs in this manner,” he said.

“It is a badly calculated political move,” he said, “This will not pay the dividends that (Han) is thinking.

“Arriving at an FTA is a very long-term process and Korea is a successful country in entering into these FTAs and has smartly agreed to major FTAs with the U.S. and the EU and the third one they are trying with China,” Das said.

He also said that Han’s call to start the process from scratch was inadvisable.

“I’d go as far to say that it is a loose statement from a politician, she’s a very senior person and I think she would be more careful.”

Korea currently has seven FTAs in effect, a further seven that are under negotiation and nine more under consideration, while the Korea-U.S. FTA is listed as concluded.

Apart from the potential to slow down other FTAs such as with Australia, the emerging danger is that Korea’s reputation on the international stage could suffer as a result of the recent opposition moves.

However, the DUP reject claims that it effects any other trade agreement or that it harms Korea’s trade reputation.

When asked if he was worried about potential international backlash, Park said “absolutely not,” citing that the U.S. requested renegotiations of ratified FTAs with Peru, Colombia and Korea.

“Despite these renegotiations, the international reputation of the U.S. was not harmed, therefore it does not make sense to say that Korea’s negotiation request will harm its international reputation,” he said.

The DUP also reject the notion that other FTAs are affected by the ongoing opposition to the U.S. FTA, in contrast to what the Australian prime minister said.

“The request of the Korea-U.S. FTA is not related greatly with other FTA agreements,” Park said.

“The Democratic (United) Party is against a wrongful FTA, an FTA that is a disadvantage to Korea, not all FTAs. This is why its opposing of the Korea-U.S. FTA cannot be directly applied to other FTA agreements currently in negotiation.”

By Hamish MacDonald
(hamishwilliammacdonald@gmail.com)