Korean Politicians Hit U.S. Demands on Trade

South Korean politicians of all stripes today blasted hard-line demands by visiting U.S. Trade Representative Carla Anderson Hills, saying more talks, not “Rambo-style” threats, would break the deadlock on bilateral trade.

The mood in economic and political circles was increasingly hostile, with accusations that Washington was bullying Seoul into speedy, far-reaching reforms it could not accommodate.

Chief policy-makers from the ruling and three opposition parties told Hills that they would jointly pass a parliamentary resolution to oppose U.S. calls for Seoul to open wide its market to U.S. goods.

Hills arrived Monday on a three-day crusade to lift Seoul’s barriers to U.S. beef, agricultural produce, services and telecommunications, and to win stronger protection of intellectual property rights. So far she has failed to narrow the gap.

She has threatened to wield a statutory weapon, the Super 301 provision of the newly revised 1988 U.S. trade act, to levy harsh trade sanctions on Seoul if the two sides fail to agree on contentious issues.

Some Koreans think Hills has pushed too far.

Representative Kim Young Jin of the opposition Party for Peace and Democracy said in a newspaper interview: “The United States is applying Rambo-style trade pressure. How can it talk of partnership with Korea?”

In a joint statement, the four parties’ policy-makers told Hills: “Keeping in mind the state of our economy, U.S. demands to open our markets fully to beef, telecommunications and farming goods are highly unreasonable.

“We urge our American counterparts to drop such extreme measures as threats and engage in dialogue to iron out our differences.”

Despite the rebuffs from the South Koreans, Hills today reported progress in the talks but reiterated that she may still slap sanctions on Seoul if it does not lift barriers against beef imports.

Hills told a news conference: “I leave Korea thinking that we accomplished a great deal.

“We would like to have a swift and fair dispute settlement procedure to ensure the inevitable disputes do not grow into trade wars.”

But asked whether Washington had dropped its threats to slap up to 100% duties on certain South Korean imports next month if Seoul failed to free its beef imports, Hills said:

“If Korea takes no action whatsoever, I am required under our law to take action. Exactly what action I will take has not been decided.”