http://www.tompaine.com/articles/2007/02/08/a_new_fast_track_for_unfai 
r_trade.php
TomPaine.com -
A New Fast Track For Unfair Trade

Christine Ahn

February 08, 2007

Christine Ahn is a policy analyst with the Korea Policy Institute and 
Oakland Institute and a member of the Korean Americans for Fair Trade 
coalition.

Trade representatives from the United States and South Korea are 
racing against the clock to sign the Korea-U.S. Free Trade Agreement 
under the "fast track" deadline. With $72 billion dollars traded 
annually between the two countries, the KorUS FTA would become the 
second largest trade deal after the North America Free Trade 
Agreement (NAFTA). While such a trade deal would normally sail 
through the halls of the U.S. Congress and the Korean National 
Assembly, times have changed since the first free-trade regimes 
rolled into Washington, D.C., and Seoul.

Critics of unfettered trade have had over a decade of evidence 
revealing how NAFTA has devastated the lives of working people across 
the continent. In the 2006 midterm elections, 37 members of Congress 
were elected on a fair-trade platform, ousting pro-free trade 
incumbents. Newly elected Democratic Sen. Jim Webb of Virginia even 
took the opportunity on primetime national television to challenge 
the Washington consensus on trade. In response to President Bush's 
State of the Union address, Webb said that America's workers should 
''expect, rightly, that in this age of globalization, their 
government has a duty to insist that their concerns be dealt with 
fairly in the international marketplace.''

Congress granted President Bush fast track, also known as Trade 
Promotion Authority, to speed the negotiation of trade agreements; in 
return, legislators are given 90 days to review the proposed deal 
before they vote up or down. As this authority will expire on July 1, 
U.S. and Korean trade representativess will meet in Washington for 
three days beginning February 11 in a frenzied attempt to smooth over 
colossal differences in order to come up with an agreement by April 
2. Wall Street corporations and South Korean chaebols (trading 
conglomerates) are salivating at this trade deal that would lower 
their tariffs and increase their profits.

Given the effects of NAFTA on America's manufacturing workers and 
Mexico's farmers, free traders can no longer simply tout the miracles 
of neoliberal economics. According to the Economic Policy Institute, 
since NAFTA took effect, over 1 million workers in the U.S. lost 
their high-paying manufacturing jobs, and were forced to take 
lower-paying service jobs where they now earn 23 percent less. U.S. 
workers without a college education-73 percent of the population-saw 
their wages drop by 13 percent since NAFTA took effect.

But NAFTA's impact is even more apparent in Mexico where real wages 
dropped by 80 percent and unemployment rose from nine to 15 percent. 
Approximately 1.5 million Mexican farmers were forced to give up 
farming because they were unable to meet the price of corn produced 
by massively-subsidized U.S. agribusinesses. Undersold and without 
many other job options in a depressed economy, Mexican farmers sought 
low-wage work in the maquiladoras or risked the dangerous journey to 
cross the heavily militarized U.S.-Mexico border. Mexico, where maize 
originated, is now facing riots by its people over high tortilla 
prices because the growing demand for ethanol have inflated corn 
prices on the global market. These are the effects of NAFTA that free 
traders must address when they espouse the limitless benefits of an 
integrated continental economy.

Seeing the devastation that a U.S. FTA has wreaked on Mexican 
peasants, Korean farmers are not about to wait for U.S. rice-the most 
subsidized crop in the world-to flood the Korean market. According to 
Dr. Ki-woong Lee, Chairman of the Agriculture Economic Department at 
Sunchon National University, the KorUS FTA would be a death knell for 
up to 140,000 Korean farmers.

Free traders argue that reducing tariffs would level the playing 
field and increase the efficiency of producers. But Korean and 
American farms are not just leagues apart, they're constellations 
apart. From 1995 to 2005, the U.S. rice industry received over $10.5 
billion dollars in government subsidies, and the lion's share-25 
percent-went to the top one percent of rice growers. In the U.S., the 
average rice farm is 397 acres, compared with South Korea's average 
rice farm of 3.5 acres. Approximately 8,000 of America's two million 
farms grow rice, compared with South Korea, where over 787,000 
farms-or 57 percent-cultivate rice.

South Korean farmers make up just eight percent of the population, 
but they are highly visible, well-organized and able to sway popular 
opinion. The three largest department stores in South Korea-Lotte, 
Hyundai and Shinsegae-have decided against purchasing imported rice 
and serving it to consumers for fear of public backlash against their 
chains.
 
Since negotiations began in February 2006, over one million South 
Koreans have protested the FTA, organizing hunger and general 
strikes. In response, the South Korean government has used secrecy 
and severe repression to silence the majority of South Koreans now 
opposed to the FTA. As a pre-condition to even beginning 
negotiations, South Korean president Roh Moo-Hyun unilaterally 
accepted to amend four Korean laws to allow U.S. markets access to 
Korea. When the Korean government finally held a hearing on whether 
to pursue the FTA, it stopped public comment after 20 minutes because 
so many people were opposed to it.

The state-run Korean Advertising Review Board blocked an ad by 
farmers and film makers opposing the FTA from being aired, saying 
that it was unfairly biased against the South Korean government. 
Meanwhile, President Roh's Committee to Support the Conclusion of the 
Korea-U.S. FTA freely broadcast a $3.8 million propaganda ad. After 
over 100,000 peasants, farmers and workers took to the streets last 
November in protest, the government instituted a ban against public 
FTA protests. They have deployed thousands of police to use physical 
violence, including water cannons, against protestors, raided local 
offices of civic organizations, detained 19 leaders of farmers' and 
workers' organizations and issued summons and warrants for 170 
leaders.

Politicians advocating the FTA are promoting the trade deal as an 
opportunity to mend bridges between the U.S. and South Korea at a 
time of heightened strained relations between the two countries. 
Washington and Seoul have diverged on their approaches to Korean 
reunification and the North Korean nuclear crisis, which, in tandem 
with other factors, has prompted a rise in anti-American sentiment in 
South Korea. One of the pre-conditions that President Roh agreed upon 
was to lift the ban on U.S. beef instituted in 2003 with the 
discovery of Bovine Spongiform Encephalopathy (BSE). Last December, 
he allowed for the import of boneless beef, which has prompted 70 
percent of Korean housewives in their 30s and 40s to say that they 
"won't buy" U.S. beef. The FTA is big news in South Korea, and the 
majority of Koreans are opposed to the FTA. A July 2006 poll found 
that 62 percent opposed the FTA. A popular image on placards at 
anti-FTA protests is one of Uncle Sam holding a chained Korean 
peasant on his knees with the caption "Koreans are enslaved to 
American beef."

South Koreans have become a vital force in the global justice 
movement through their highly visible demonstrations at WTO protests. 
They brought global media attention to the desperate struggle facing 
peasants and workers under neoliberal globalization when peasant 
leader Lee Kyung Hae stabbed himself in the heart at the 2003 WTO 
ministerial meeting in Cancun, Mexico while wearing a sign saying, 
"The WTO Kills Farmers."

If a trade deal is signed next week, Congress has an opportunity to 
vote it down. Social movements in South Korea and the United States 
must ensure that Congress is not reading outdated rhetoric claiming 
the limitless benefits of free capital. Now elected officials-seeing 
the new faces in Congress-must be held accountable to the anger and 
frustration felt by middle and working class people who see their 
security dwindling to further line the pockets of white-collar 
business executives.





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