Korea Times | April 13, 2004
Concern has been growing here over the United States' move to revive its old trade retaliation tool, Super 301, to open Asian markets ahead of its presidential election.
Market analysts don't rule out the possibility that the Bush administration will accept a call from its Congressmen for the revival of the ''Super 301 provision'' as part of steps to give more American goods access to Asian markets.
''The U.S. has strong points in intellectual property and the service sector. But nowadays U.S. companies go to Asian nations, such as India and China, to find cheap labor, which has resulted in job loss in the U.S.,'' Samsung Economic Research Institute senior economist Jeon Young-jae said.
''Accordingly, the U.S. wants to take tougher action against a few Asian countries, in a desperate bid to offset losses in the U.S. job market,'' he added.
Super 301 refers to a section of the U.S. trade law that allows exporters to seek compensation for or elimination of unfair trade barriers by other countries.
He pointed out that if the provision were revived, it would deal a blow to the South Korean economy, especially the automobile industry.
According to trade and investment promotion agency KOTRA, nine top Democrats, including House minority leader Nancy Pelosi of California and House whip Steny Hoyer of Maryland, urged President George W. Bush on Thursday to bring cases, including on Japan's currency intervention, to the World Trade Organization (WTO) and revive the trade retaliation provision.
In a letter to the U.S. president, the nine said Bush has failed to take tough action to protect American jobs from unfair trade practices.
''After the loss of almost 3 million manufacturing jobs since January 2001, and the growing problem of outsourcing in the services sector, it is time to start producing results for American workers, farmers and businesses,'' the letter said.
The Democrats listed several practices warranting a challenge at the WTO _ for example, South Korea's alleged imposition of non-tariff barriers against autos and auto parts, the limits placed by China on ''trading rights'' allowing imports and on ''distribution rights'' to sell those imports in China, as well as the imposition of China-only technology product standards.
''Democrats' demands are considered part of presidential campaign against the Republican Party,'' a KOTRA official said.
''But if stagnant job markets continue in the U.S., the Super 301 provision may be revived regardless of the result of the presidential election,'' he said.
A Seoul official said even the U.S. acknowledges that the South Korean market has opened wider and the provision would not have any meaningful effect on the country.
The official added that generally South Korea-U.S. trade relations have been good. Friction is limited only to technical aspects, he said.Korea Times:
