S.Korean Assembly passes FTA with Chile

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Last updated at: (Beijing Time) Tuesday, February 17, 2004

S.Korean Assembly passes FTA with Chile

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The National Assembly of South Korea on Monday ratified the long-delayed South Korea-Chile free trade agreement (FTA), setting a significant precedent for the nation's trade dealings with other countries.

The landmark approval of the bilateral accord, a first for South Korea, comes after the unicameral legislature failed three times to approve it. Lawmakers feared repercussions from workers in the agricultural sector.

Of the 234 lawmakers in attendance for vote in the Assembly, 162 voted in favor of it and 71 voted against it. One lawmaker abstained.

In a move to soften opposition by lawmakers from farming electoral districts, Prime Minister Goh Kun sought help from the Assembly to ratify the delayed pact by explaining the government's upgraded agricultural aid package.

With the ratification of the FTA, tariffs on two-thirds of South Korean exports including farm products and virtually all of those on Chilean-manufactured goods and agricultural products will be lifted. The agreement will officially come into effect in 30 days.

The FTA is expected to pave the way for the nation's manufactured products-- automobiles in particular-- to overtake Japanese manufacturers operating in the Chilean market, according to officials. Seoul will remove import tariffs on all Chilean goods, with electric copper cathodes being the only exception. Chile will free tariffs on 224 agricultural items in the first year, including cows, pigs, chickens, furs, wool and wheat.

Lawmakers have been under intense pressure from exporters and businessmen who believe further delays of the FTA ratification will undermine not only South Korea's exports to Chile but also the country's credibility.

Chile's two-house parliament has already approved the bilateral FTA.

Local farmers and fishermen, who account for one-eighth of South Korea's population, fear the pact will take away their business and hinder local industries. They vowed to vote against legislators who support the agreement in the April 15 general elections.

A majority of lawmakers from 149-strong Grand National Party and the 47-member pro-government Uri Party voted for the ratification.

Source: Agencies

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