Free Trade Agreement and the Korean Legislature

1. Free Trade Agreement and the Korean Legislature Hyun-Chool Lee

2. Korea-USA FTA and Democratic Deficit Background: Since the 1997East Asian financial crisis, various Korean governments have pursued bilateral and multilateral FTAs. November 1998,the Foreign Economic Policy Co-ordination Committee formally decided to pursue FTAs as part of its trade policy, Chile was chosen as the first nation for negotiation. Korea-Chile FTA finally came into effect in April 2004.

3. Korea-USA FTA and Democratic Deficit Democratic Deficit Problems: • First, no institutional device exists to mobilize national consensus. • Secondly, negotiation information and related materials are not properly provided to the public. • Thirdly, the legislature has been unable to perform the functions of checking, controlling and supervising the administration. • Fourthly, public opinion is not sufficiently reflected in the negotiation process.

4. Free Trade Agreements and the Korean National Assembly Korea-Chile FTA The first round of negotiations on the Korea-Chile FTA took place in December, 1999. The fourth round of negotiations was held in Seoul in December, 2004.

5. Free Trade Agreements and the Korean National Assembly Korea-Chile FTA Assembly VS Farmers’ Party • Farmers’ Party played a significant role of the ratification process. • They obstructed the submission of agenda at the main plenary session by physically obstructing • National Assembly had considerable limitations. • There was no mechanism to participate in the FTA decision-making process. • Published support measures for farmers in order to drive the ratification process.

6. Free Trade Agreements and the Korean National Assembly Korea-USA FTA Base on experienced lesson, the government introduced the ‘‘Free Trade Agreement Procedure Regulation.’’ in June 2004 • applied to future FTA negotiations • Set an agency to deal with FTAs and regulated all the processes of negotiation.(pre-negotiation negotiation and post-negotiation. The Korea-USA FTA negotiation started on 3 February 2006. • ‘‘National Assembly Group Studying the Korea-US FTA.’’ wes formed by both the ruling and opposition parties.

7. Free Trade Agreements and the Korean National Assembly Korea-USA FTA Special Committee of the National Assembly on the Korea-USA FTA was agreed in June • to complete official investigations and maintain oversight of the negotiation process. • first meeting was held only on 31 July, after the second round of negotiation was over. Different opinion was produced between USA case and Korean case • In Korean case, the government claimed that disclosure of the details was not proper protocol • In the US case, they has different legislation that allow Congress and others to view the agreement Beginning in April 2008, the politics of the streets took over about protesting against the import of US beef. The National Assembly failed to respond to the conflicts over the FTA.

8. An Analysis of the Korean Legislature’s Responses Constitutional Right to Consent to the Execution and Ratification of Agreements National Assembly’s Constitutional Authority to Trade • National Assembly has the right only to ratify a treaty after negotiations have been completed.(excludes the pre-negotiation and negotiation processes. ) Article 73 of the Constitution grants the right to execute and ratify a treaty to the President. • limits the President’s exercise of diplomacy rights • expands transparency and oversight

9. An Analysis of the Korean Legislature’s Responses Constitutional Right to Consent to the Execution and Ratification of Agreements the National Assembly’s right to consent to a treaty had been debated by Constitutional scholars • One approach: execution and ratification’’ to be connected rather than separated. • Another approach: it is skewed too much toward the President in its distribution of power in relation to the formation of a treaty Constitutional right • The right to execute and ratify a treaty to the President • The right to consent to the execution and ratification of a treaty to the National Assembly • FTAs are much more farreaching, with multiple issues, multiple contentions and broad national impacts

10. Contention and the Trade Procedure Bill Trade Procedure Bill • It was signed on Feb 2006. • There are four procedure bills. (by Kwon, Lee, Song, and Kim) • Institutional mechanism to resolve domestic conflicts over trade agreements. • To Strengthen National Assembly’s functions of supervision and coordination of the government • With this bill, trade agreements should be negotiated, reviewed and ratified by National Assembly

11. Contention and the Trade Procedure Bill Purpose of Procedure Bill • Expanding National Assembly’s authority to supervise and coordinate the government by engaging in trade negotiations. • To prepare a relevant institution and system for negotiation. • To minimize socio-economic damage from the agreement and maximize national economic development • To promote transparency and state capacity for trade negotiation

12. Definition of Trade Agreement • All the provisions related to economics (by Kwon) • Trade agreement that is subject to Assembly consent under the Constitution. (by Lee and Kim)

13. The Governance of Trade Private Advisory Committee Kwon’s proposal • The Committee should be established under the Prime Minister’s Office Lee and Kim’s proposal • The Committee should fall under the Trade Commision Song’s proposal • The Committee should be with the Ministry of Foreign Affairs and Trade

14. The Governance of Trade When the Trade Commision • Is established under the Prime Minister • This would enable the Trade Commision to undertake careful deliberation and exercise its decision rights with regards to the Commercial Treaty Policy 2. Is established with the Prime Minister • Different interest groups will come to consensus, resulting in better coordination and better negotiation outcomes. 3. Is established under the Executive Branch • It will give a single entity sole access to trade information, deliberating power and decision making power

15. The Governance of Trade Nomination of Private Advisory Committee Members • Song’s proposal is not able to state the National Assembly’s right to nominate the Committee members • Other proposals claim that over half of the Private Advisory Committee members should be nominated by the National Assembly

16. The Governance of Trade Reporting obligation to the National Assembly • Benefit • Promoting the Assembly’s power and encouraging the government’s responsibility • Enhancing transparency and developing democratic process • Government will be able to react more effectively with rapidly changing trade environment • Concerns • Reporting obligation may impinge on the power of the President

17. Disclosure of Information Kwon and Lee’s proposal • Strengthen the public’s right to information • Require submission of all materials to the Assembly whether national secrets or not Song’s proposal • Article 127 of the Penal Code • Leaking confidential materials is a crime for a civil servant • Must be according to the current laws such as the Information Disclosure Act. • Having problem of restricting public’s right to information

18. Conclusion • Because of imbalance from the executive and the legislature, domestic conflicts were generated by FTA negotiation. • This imbalance is common situation in Globalization. • Trade Procedure Acts contribute to the development of trade governance. • How to prevent the executive branch’s monopoly • Strengthen the institutional basis of the National Assembly’s power • Strengthen the right of the National Assembly to access information • The Assembly’s prior consent procedure to the nomination of key foreign policy-related positions in the executive branch should be adopted.

19. Resources http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=100&oid=008&aid=0003815075 http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=152&aid=0000003307