Yonhap’s news channel announces a FTA has been agreed two by both parties (assuming my Korean understanding is correct). Most of my reading covers the fact that many sectors will be opened up on a very very long timetable. Cannot wait for the details.
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28 Comments
Here’s the WSJ article:
http://online.wsj.com/article_.....56597.html
Apparently an exchange of beef for rice - rats, no riceroni - and a mutual scuttling of auto tariffs were the big trade-offs.
It’s way to early to ascertain, though, whether this is a “deal”. First of all, it remains actually to be drafted and signed; and anyone who has negotiated with a Korean knows an awful lot can happen between expressions of pious intent and signature of a contract - not to mention that even signed contracts are typically treated by Koreans as just the opening of “real” negotiations - something that the Korean side may have miscalculated here, because the nature of the current US “fast-track” procedure precludes any further negotiation. Second, I think there’s a fair chance that the negotiators here - on both sides - are really just declaring victory and passing the ball and the buck to their respective legislatures. Finally, my guess it that this deal will not find approval with either.
http://news.chosun.com/site/da.....00636.html
Halleluiah!
14 years hear and things getter better one step at a time!
Sperwer, right you are. They even come after you once the contract is finished. They will find every nickel in your vapor-trail.
Places like Russia, China, and Korea are run by shifty dudes who flaut agreements, and can’t be trusted. Why why why. would anyone want to enter into an agreement with such people. Look at Warren Buffet, world’s shrewdest investor. Does he invest with dodgy people? No way. Waste of time money and effort.
Berkshire Hathaway owns 4% of POSCO.
What about law? Will it open up the legal business?
Don’t hold your breath. Legal market has received no mention so far. There is no lobby in the US to open Korea’s legal market. The momentum would have to come from within, from Korean companies, accounting firms, investment banks, securities companies,etc that demand access to foreign law firms. That, or for the ROK government would have to aknowledge that an open legal market is a necessary part of realizing its financial hub strategy. You already know how well that’s going…
Mr. Linkd, is healthcare in South Korea getting more expensive?
Thanks.
According to chosun.com(Korean edition) the legal service market is to be opened to American lawyers over 5 years in 3 stages.
Nope. There’s plenty of competition here to keep prices down. Free trade may result in higher prices for medicine, though. Have to see the details.
For American lawyers to join Korean firms or for American firms to open up here as independents?
According to a poll reported in The Chosun Daily [http://english.chosun.com/w21data/html/news/200703/200703300025.html]
The article goes on to claim that “Korea’s law market will open gradually starting at the end of this year when foreign lawyers will be allowed to perform some services here.”
Don’t hold your breath; I know some who tried starting fourteen years ago when Korea was supposed to open its market - they went into respiratory arrest.
The “opening” to which the article refers is one that Korea was supposed already to have made under WTO and, if you look at the details, isn’t an opening at all - it’s the entrance to a cul d’sac. I’ll leave it to Brendon or another of the local cigar store white men to retail the detail; I’m sorry, but beyond this, I won’t be bothered with it any more.
Does any lawyer herein think that opening up the legal services market would improve Korean society on the whole (in the long run)?
I’m curious.
Those who talk down on Korea on every opportunity are like those losers who keep complaining about their jobs, but cannot find better ones.
Anyway, Linkd, the article in Chosun doesn’t say much, but this is the rough translation.
” American law firmws can open offices in Korea and advise on American and international laws when the FTA takes effect(after ratification by Parliaments of both countries). Within 2 years after ratification, Americans can cooperate with Korean firms; within 5 years American and Korean firms can set up joint firms, and American firms can hire Korean lawyers.”
Don’t tell me - I’m no lawyer. But those ambulance chasers up at chinalaw (#7) may want to digest your translation, seasoned with Sperwer’s generous grain of salt.
Despite the predictable negativity here, I think this definitely is one step forward for Korea. One of the very few things that Roh Mu Hyun should be lauded for. A credit should be given to where it is due. Of course, there’s lot of obstacles that must be hurdled yet. But as the Chili-Korea FTA shows, it could be done. FTA with the US will vanquish the morally bankrupt Japanese economic model and finally put S.Korea on the road to economic reforms.
I hope so “cm” for that would be great. Korea needs better than China, even with all of its money.
If Congress is foolish enough to let them get away with it, it certainly is a deal that disproportionately advantages Korea. Whether such continuation of the breast feeding of this 50+ year old whingeing infant is a step forward - well?
Looks like it will go through. I can hardly believe Roh will get credit for FTA. Up is down and left is right. What the heck, how could the idiot get something right? Did his son manage to convince the idiot on FTA? Why did the URI party agree?
#20–Hey, even a broken clock is right twice a day.
Sperwer, Korea’s market is small compared to Japan and China. But Korea’s FTA will be important for the United States because Bush intends to open up all of Asia to Free Trade - including Japan and China who will now be feeling the pressure to strike up their own trade deals with the US.
Now that the details are coming out it sounds like Korea got a better deal than the U.S. For example, U.S. beef tariffs are removed over 15 years; a lot of agricultural products were left out, and others have long tariff fadeouts; large parts of the service industry remain closed; it sneaks Kaesong into the deal, which is criminal, etc.
Also, it wouldn’t be surprising if Korea still kept U.S. cars out using nontariff regulatory barriers and the Uri Nara, buy Korean cheerleading that has worked well until now.
These FTAs are so piecemeal anyway that they shouldn’t be called “free.” The Financial Times had an editorial to day about the FTA that questioned the wisdom of bliateral agreements over multilateral ones, which is a good question.
“a lot of agricultural products were left out, and others have long tariff fadeouts; large parts of the service industry remain closed; ”
That’s a matter of interpretation, is the cup half full or half empty.
“it sneaks Kaesong into the deal, which is criminal, etc.”
No it doesn’t. Kaesong will be discussed later as promised to the Koreans, but that doesn’t mean the US will ever allow it.
“Also, it wouldn’t be surprising if Korea still kept U.S. cars out using nontariff regulatory barriers and the Uri Nara, buy Korean cheerleading that has worked well until now.”
Sales of European and Japanese cars have exponentially increased every year - even non luxury makes. Why aren’t there any American makes doing even half as good? Is it all because of non tariff barriers?
It’s true. Going from 1000 units sold one year to 2000 sold the next year is an exponential difference. Viva the free market!
This should be called the MTA, as in managed trade agreement, because there’s very little free about it. And this whole us vs. them drama played out in the Korean press is completely ludicrous, as if keeping evil American rice out is actually good for uri nara.
Newsflash: Keeping your markets protected is not good for you in the long run. You have the highest food prices in THE WORLD. This is not about giving it up to Uncle Sam, it’s about reaching the next level of economic development.
The cup is nearly empty for Korea. It has the food prices of Switzerland without the Swiss income level. The chaebol families use the Uri Nara cheerleading to protect their market and the faux leftists here who have a knee-jerk reaction against anything involving the U.S. fall in line behind them in keeping the market closed.
This agreement as Wedge said is about managed trade, not free trade.
Since it appears that Korea got a good deal out of this, probably better than what the US got, it is a step in the right direction for Korea. Socialist isolationism will get them nowhere and even Roh knows this.