Businesses brace for U.S. protectionism
Written by Writer on Monday, November 10th, 2008
Businesses brace for U.S. protectionism
Korean businesses are seeking to cope with a possible surge in protectionist sentiment in Washington under President-elect Barack Obama.
The nation’s business groups are trying to communicate with Obama’s aides and Democrats, who have few ties to Korean business leaders, industry sources said.
Obama’s election win last week has sparked concerns in Korea over his “protectionist” policies. During his campaign, Obama expressed opposition to the U.S. free trade deal with Korea, saying it failed to address an imbalance in the two countries’ car trade.
Obama’s statements add to the concerns of the Korean economy, which is already struggling with falling global demand. The Korea-U.S. FTA, reached last year, is the largest-ever trade pact for Korea, which relies heavily on exports for growth. The United States is Korea’s second biggest single export market, after China.
Business groups have invited former and current U.S. government officials to Korea as part of efforts to build communications channels with the incoming administration.
On Nov. 12, the Federation of Korean Industries, Korea’s largest business lobby, plans to attend a forum on the trade policy of the Obama administration. A former high-ranking U.S. trade official, Jay Eizenstat, has also been invited.
Eizenstat, a former director for Customers Affairs in the Office of the United States Trade Representative, engaged in talks on major U.S. trade deals including the Korea-U.S. Free Trade Agreement.
Samuel Berger, National Security Advisor during the Clinton Administration, is also to visit Korea to attend another seminar to be held by the FKI on Nov. 18.
Former U.S. Vice President Al Gore plans to attend a dinner meeting hosted by the Korea International Trade Association during his visit to Korea.
The Korea Chamber of Commerce and Industry is also arranging a meeting between new U.S. Ambassador to Korea, Kathleen Stephens, and Korean business leaders.
Kim Seong-youn, chairman of Hanwa Group, is one of few Korean business leaders to have networks with both Democrats and Republicans. Kim is known to maintain close ties with former Senate Democratic leader Tom Daschle, who is the favorite to be named U.S. presidential secretary of Health and Human Services.
Cho Suck-rae, chairman of the FKI, is also looking to enhance exchanges with U.S. business leaders to help Korean businesses to build networks with Democrats.
Cho and other key members of the FKI also plan to travel to Washington to attend Obama’s inaugural ceremony, scheduled for Jan. 20.
By Jin Hyun-joo
(hjjin@heraldm.com)
The Korea Herald
2008.11.10
