A win-win in Korea

A win-win in Korea
Article Last Updated: 08/04/2007 08:24:08 AM PDT

ON THURSDAY, the Bush administration announced the launch of talks aimed at a free-trade area with South Korea. From extreme poverty 40 years ago, South Korea has risen to be the 12th-largest economy in the world; if the negotiators succeed, they will create the biggest free-trade zone since the North American Free Trade Agreement of 12 years ago.
Three economic studies suggest that a deal could boost incomes slightly in the United States and substantially in South Korea. But that would be only one of its advantages.
A deal would strengthen political relations with South Korea, a country that hosts U.S. troops but whose long-term friendliness cannot be taken for granted.
South Korea mistrusts Japan's pursuit of a permanent seat on the U.N. Security Council, whereas the United State favors it. A trade pact would introduce positive energy into a challenged alliance.
A pact might also help revive the Doha round of global trade talks. Some trade deals can divert energy from the big economic prize of multilateral liberalization, but that shouldn't be true here. Rather, bilateral talks with the United States will push South Korea to open its markets to foreign services and farm goods — precisely the sectors South Korea would be called on to liberalize in a Doha deal. So negotiations could offer South Korea a double incentive. Since Korean farmers have become the most flamboyant demonstrators at international trade meetings, anything that helps to bring their government along is welcome.
If the talks fail, it better not be for lack of U.S. effort or because congressional leaders, who have offered bipartisan encouragement so far, get cold feet.
Drawing South Korea into negotiations and then abruptly pulling back would only harm U.S. diplomacy in one of the world's tensest regions.
Washington Post

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