U.S. and Korean lawmakers call for big changes to trade agreement

Posted By Josh Rogin Tuesday, October 19, 2010 - 4:44 PM

When world leaders convene on Seoul next month for the G-20 Summit, trade policy experts are hoping that the United States and the South Korean government will be able to show that they've made progress in finalizing the terms of the long-suffering South Korea-U.S Free Trade Agreement.

The Office of the U.S. Trade Representative (USTR) argues that the agreement, which was signed in 2007 but has not been approved by the United States, "would be the United States' most commercially significant free trade agreement in more than 16 years" and would add $10 billion to $12 billion to annual U.S. GDP, and around $10 billion to annual merchandise exports to Korea. But the deal faces opposition from Congress, and especially from Democrats on Capitol Hill, who complain that it fails to address issues of Korean automotive surpluses and restrictions on Korean imports of American beef.

The U.S. Chamber of Commerce has been pushing hard for the Obama administration to iron out the differences in advance of the G-20 meeting in November, which the president pledged to do when he met with South Korean President Lee Myung-bak in June. But as the U.S. midterm elections approach, both Democratic and Republican candidates have staked out their opposition to the deal amid fears that it could send precious American jobs overseas.

On Monday, 21 U.S. lawmakers joined with 35 South Korea lawmakers to write to both presidents demanding significant changes in the agreement. "An FTA that prioritizes corporate interests over those of our constituents is not an agreement but a compromise of our countries' ideals, and it is one we foresee working to defeat," the lawmakers wrote.

Congressman Mike Michaud (D-ME), chairman of the House Trade Working Group, said in a statement publicizing the letter, "Even beyond the market access issues for textiles, autos and beef, the current free trade agreement is based on the same failed NAFTA model and promises to ship U.S. jobs overseas."

The letter also calls on the agreement to better address issues of alleviating poverty, advocating social justice, advancing human rights, and protecting the environment.

On October 9, USTR put out a statement that the U.S. and the ROK had ""exchanged views relative to the US-Korea trade agreement," but neither side had offered a "formal" proposal. For some Korea observers, the United States' reticence to announce progress in the ongoing discussions over the agreement sends a signal that the administration may not be able to show any concrete progress at the November Seoul Summit.

"Anodyne blather like this helps explain rising concern, if not cynicism, in some business and media circles that USTR is under such tight political constraints from the White House that even having a 'framework' ready for Obama and Lee to initial at the G-20 seems a long shot," Samuels International Vice President Chris Nelson wrote in his newsletter The Nelson Report.

"Certainly the Obama political pros are terrified of angering Labor activists who must turn out in large numbers if Nov. 2 is not to be a total disaster," continued Nelson, "and who can blame them?"

COMMENTS (0)

EXPLORE:EAST ASIA, DIPLOMACY, G-20, OBAMA ADMINISTRATION, TRADE, U.S. CONGRESS, U.S. FOREIGN POLICY

Obama's Asia itinerary revealed

Posted By Josh Rogin Tuesday, November 10, 2009 - 12:38 AM

Here is President Obama's full itinerary for his trip to Asia, as conveyed by Ben Rhodes, deputy national security advisor for strategic communications, Jeffrey Bader, NSC senior director for East Asian affairs, and Michael Froman, deputy national security advisor for international economic affairs:

"The overarching theme is that America is a Pacific nation, it understands the importance of Asia in the 21^st Century, and it's going to be engaged in a very comprehensive way," said Rhodes.

"I think it's a common perception in the region that U.S. influence has been on the decline in the last decade while Chinese influence has been increasing," said Bader.

Thursday, November 12: Alaska

President Obama departs Washington, DC and flies to Alaska, where he will speak to soldiers at Elmendorf Air Force Base. The schedule was changed to allow Obama to attend the memorial service at Fort Hood Texas on Tuesday. Leaving Alaska Thursday evening for Tokyo.

Friday, November 13: Tokyo

Obama arrives in Tokyo and holds a bilateral meeting with new prime minister Yukio Hatoyama at 7PM, followed by a joint press conference. He'll be looking to build personal ties with the new leader, whose Democratic Party of Japan took power in a stunning August election. "This government is looking for a more equal relationship with the United States, we are prepared to move in that direction," Bader said. Don't expect any breakthroughs on the dispute over U.S. basing in Okinawa.

Saturday, November 14: Tokyo Day 2

Obama will give a speech at Suntory Hall at 10 AM, giving "his view of American engagement in Asia." Then he will have an audience with the Japanese Emperor Akihito and his wife Empress Michiko. Leaving Saturday night for Singapore.

Sunday, November 15: Singapore

First, Obama will have a bilateral meeting with Singapore president Lee Hsien Loong, followed by the APEC summit leaders' meeting. At 2PM, there will be a bilateral meeting with Russian President Dmitri Medvedev. Later in the afternoon, Obama will have a multilateral meeting with all 10 leaders of the Association for Southeast Asian Nations (ASEAN), which will for the first time see American and Burmese leaders in the same room. "We're not going to let the Burmese tail wag the ASEAN dog," said Bader, saying that the previous policy of freezing out Burma has preventing U.S. interactions with ASEAN. Obama will also have a bilateral meeting with Indonesian President Susilo Bambang Yudhoyono. Leaving Sunday evening for Shanghai.

Monday, November 16: Shanghai

Obama will start the day meeting with Shanghai Mayor Han Zheng. After that, he will have a dialogue with Chinese youth and then will travel to Beijing to have dinner with Chinese president Hu Jintao. "We've have a smooth transition in the U.S.-China relationship... the relationship is off to a good start," said Bader. Issues that will get the most attention are North Korea, Iran, climate change, human rights, Afghanistan, and Pakistan. "Clean energy is something where we expect to have some accomplishments to show," Bader said.

Obama will not stop by the sight of the Shanghai Expo 2010 and no comment on whether Obama will visit his half-brother Mark Okoth Obama Ndesandjo, who lives there.

Tuesday, November 17: Beijing

There will be a morning bilateral meeting with Hu, followed by a joint press conference. Then, Obama will tour Beijing hot spot before his state dinner. Obama will raise various human rights issues directly with Hu, Bader said, including Tibet, and that message was not undercut by Obama's decision not to meet with the Dalai Lama in Washington last month. "The president has made it clear that he is ready to meet with the Dalai Lama in the future at the appropriate time," Bader said.

Wednesday, November 18: Beijing Day 2:

Obama meets with Chinese premier Wen Jiabao and do some more sightseeing. Also, "We do not expect that Beijing is going to produce a climate change agreement," said Froman. That evening, Obama will leave for Seoul, South Korea.

Thursday, November 19: Seoul:

Obama will have a morning bilateral meeting with President Lee Myung-Bak, followed by a press conference. He will then visit U.S. troops in South Korea before heading back to the United States that evening. No real expectation on movement on the U.S-Korea Free Trade Agreement. "He has noted in the past that there are some outstanding issues... he is prepared to have that conversation with the Koreans," said Froman.

COMMENTS (0)

EXPLORE:EAST ASIA, PACIFIC, SOUTH ASIA, SOUTHEAST ASIA, CHINA, G-20, JAPAN