Korean Job Discussion Forums

[superacidjax]

http://joongangdaily.joins.com/article/view.asp?aid=2903942

The nutshell: opposition party tries to physically stop GNP from advancing the KORUS-FTA (Korea US Free Trade Agreement) by snatching the microphone, physically grabbing the chairman of the National Assembly�s Foreign Affairs Committee, and using power saws to cut through a door locked to keep out aggressive and violent lawmakers.

It would be really amazing and sparkling if the opposition party in Korea would wake the heck up when it comes to economics. The chaebol-oriented business climate is a major source of economic malaise in the country. By restricting imports in their nefarious ways, Korean consumers pay much higher prices than they would without such a archaic, protectionist mindset. When protectionism or "juche" is taken to the extreme, a North Korea economy results.

In just agriculture alone, specifically rice, consumers pay over 200% above world market prices for rice. The protectionism of the rice market, while obviously beneficial for the inefficient and outdated domestic rice farmers, harms the general public in much higher numbers than the harm that would befall farmers if rice import quotas and tariffs were eliminated.

Of course the pitchfork crowd, along with the North Korean-style Juche far left seems to have the most dramatic voice in the issue.

A fundamental law of economics states that one should not focus on the needs of the few at the expense of the whole, the whole in this case being the Korean consumer.

If Korea wants to be taken seriously as a world economic power, they should at minimum start to live up to their WTO agreements. They also should promote trade agreements and a general opening of markets.

For too long Korea has wanted to have it kimchi and eat it too. From government subsidization of steel production (and dumping issues) to the backroom deals allowing Hyundai et al to operate in a competition-minimal environment, it's time for Korea to grow up and become a world player.

Of course, it would also be encouraging if Korean lawmakers would stop acting like children. Debate and even argument is fine (and essential to a republic) but violence and stealing microphones makes Korea look like a banana republic.

BTW, I realize that the US, EU and others are guilty of various degrees of protectionism as well -- I am all for those countries ending their anti-trade practices as well. I'm not just dumping on Korea, although, I don't often see fist-fights at the EU or within the US Congress or British Parliament!

[mises]

It won't get past Obama, if it even reaches him.

Korea has had years of an unbelievably preferential trade relationship with the US. It will end.

[superacidjax]

Obama SHOULD approve it. It will mean all sorts of great benefits for Americans (and Koreans.) Cheaper LCD/Plasma TVs, cheaper cars, cheaper electronics.

For Koreans, it will mean cheaper agricultural products, among other things. I haven't read the FTA text since it was first negotiated a few years ago, so I can't remember the details.

Of course, if Obama doesn't allow the FTA, it will be simply because Obama cares more about labor union voters than he does for the average Americans.

American protectionism is as stupid as Korean protectionism. NAFTA, despite its flaws was an important reason for the American economic boom in the 1990s. Bill Clinton (and the Republican-controlled Congress) was very smart to pass NAFTA, despite the crying of the American labor unions. The jobs allegedly "lost" due to NAFTA were gained in other areas. The lower cost of products led to higher consumer spending and that increased capital allowed for business expansion. The total number of jobs pre-NAFTA was substantially lower than the total number of jobs post-NAFTA. Those union morons in the States try to claim that free-trade causes job loss -- perhaps true, but only within certain less efficient sectors. Maybe, for example, some textile jobs were lost, however, the longshoreman's union saw massive job increases due to substantially increased port activity. The net gain in jobs (due to free-trade) has always been higher.

[mises]

No, he shouldn't.

He should crush the Koreans first. Reciprocity on all goods, similar goods and subsitutables. After the ROK economy falls apart, then you force them open.

[Ya-ta Boy]

[superacidjax]

great points -- both of you! I agree.. full reciprocity.. not FTA-lite, but full FTA. Competition is the best economic engine.

[mises]

Korea exports 440,000 cars a year (though not this year) to the USA. The US exports less than 25k to the ROK, if memory serves. This is largely not due to consumer preference but to "non-tariff barriers to trade", a game the Koreans excel at.

The United States must export her way back to fiscal health. For a long while, she has used favorable terms of trade to keep nations like Korea in the Western camp. This is no longer appropriate policy. The US needs to get very serious about trade.

[TheUrbanMyth]

[superacidjax]

[quote="TheUrbanMyth"]

[Ya-ta Boy]

[Rusty Shackleford]

[Ya-ta Boy]

[Rusty Shackleford]

[pkang0202]

[mises]