By It is almost comical how the US and South Korea can never get on the same page:
Trade Minister Kim Jong-hoon says that the South Korean government should stick to the principle of not introducing new trade barriers.
In a symposium held in Seoul, Kim said that the government needs to take measures to boost the economy. But he warned that excessive government intervention in the market could lead to protectionism.
The minister said that if a country takes distorted measures to bolster its economy, its trade partners will take similar measures and a vicious trade cycle will continue.
Kim also rejected the possibility of a renegotiation of the Korea-U.S. free trade agreement. He said if the U.S. Congress wants a renegotiation of regulations on automobile trade, it will find answers in the FTA agreement. [KBS Global]
Korea for decades implemented government protectionist policies and now under President Lee Myung-bak has become very much an advocate of free trade with even Lee opening the Korean market to US beef that is now flying off supermarket shelves.
While this is going on the new US President seems committed to implementing protectionist policies in the US especially against Korean companies that would make all the work Lee did to open the beef market in Korea for nothing.
2:25 pm on February 26th, 2009 1
I think you are right GI.
If the USA rises protectionist barriers against Korean products Korea won’t need to keep buying American beef.
On the other hand Brazil have been trying to open Korean and Japanese beef market for years but both countries were afraid to do so because of USA pressure.
If the USA press the protectionism button, Korea could open Korean beef market to Brazil and increase its chance to sell Korean products to Brazil like selling the KTX for Brazilian high speed train project between Sao Paulo and Rio de Janeiro, 4 KDX-II destroyers for Brazilian navy destroyer procurement, sell T-50 jets for Brazilian air force trainer procurement, DMB and also have more access to mining and commodity market, as well as Brazilian biodiesel market.
Brazilian beef exporters are desperate to sell to Korea so are making pressure on President Lula to use whatever measure is necessary to open Korean market.
Brazil’s new ambassador for Korea, Mr Fujita (he is japanese-brazilian), said that Brazil is already considering the idea of giving Korea some concession like the high speed train project to open Korean market, but it was still uncertain if this would be enough to seduce the Koreans, but if Korea loses the obligation to buy American beef, than Brazilian inroad to Korea would be easier.
It would be difficult for Korea in the short time, but it would a good opportunity to open new markets around the world and decrease its dependency on USA market.
1:34 am on February 27th, 2009 2
Dear Kim, Jong-hoon
No body is listening to you and you can kiss my -Made in America- Ass!
9:11 pm on November 4th, 2010 3
You people either work for the Korean Government propaganda machine or you are simply stupid beyond belief. I have lived in Korea for the last five years and I can not think of one thing besides beef that has been allowed in Korea without at least a 50% import tax. Meanwhile, The U.S. has honored its side of the agreements and allowed you to sell all of your junk there. Korean companies sell Korean products in Korea for 50% more than they do in countries that enforce free trade and Korean people are still loyal to the companies like Samsung and LG which have taken advantage of them for years with the help of the Korean government. No wonder Korea has been occupied by other countries for most of it's existance, you people aren't smart enough to think for yourselves or know when your being taken advantage of.
11:06 pm on November 4th, 2010 4
Robert,
"I can not think of one thing besides beef that has been allowed in Korea without at least a 50% import tax."
I don't think that is true… but I can understand why you believe it.
I have imported a lot of stuff… mostly tools and other high-dollar technical equipment. The tax is always less than 10%. I have been told the maximum possible is 18%.
High retail prices in Korea seem to be more of a function of price fixing… as everyone is a member of an association… and that discourages competition.
Further, Korea (Asia?) has traditionally had many levels of distributors between manufacture/importation and retail… and they all want some profit.
So… I think crony capitalism, rather than government taxation, is to blame.
I am going through this right now. I need a piece of electronic equipment. It is $150 in the States but w350,000 in Korea. I'm just going to have it mailed from the States and pay the tax when it arrives… although sometimes, they don't even collect it in the mail.
While all this is irritating, I do enjoy the fact that services in Korea are CHEAP! House cleaners, appliance repairmen, taxis, car repair, etc.
In many ways, this makes up for the complete screwjob in retail.