Quick FTA ratification needed

President Lee Myung-bak proposed to the ruling and opposition party leaders at the National Assembly Tuesday that he will guarantee renegotiation of the investor-state dispute settlement system, a hotly debated item in the ratification of the Korea-U.S. free trade agreement. “If the National Assembly ratifies the bill and makes an official request for renegotiation, I will ask the U.S. to come forth for renegotiation within three months,” he said. Main opposition Democratic Party Chairman Sohn Hak-kyu said, “The investor-state dispute clause should be removed from the agreement. But I will deliver the president’s proposal to the party and seek its opinion.”

What President Lee proposed was an idea that was rejected due to opposition by the Democratic Party leadership, though agreed on by ruling party floor leader Hwang Woo-yeo and Democratic Party floor leader Kim Jin-pyo. The president said he is willing to accept the idea, effectively guaranteeing renegotiation of the investor-state dispute system. If the Democratic Party rejects the free trade agreement due to the clause, it should accept the president’s offer and help ratify the accord.

The two parties are trying to agree on ratification. Eight lawmakers from both parties who support ratification said in a joint statement that they promise not to railroad the bill through or reject it by using physical force over the investor-state dispute system. They formed a six-member council for consultation and are surveying their lawmakers. A significant number of members are known to be backing the agreement.

It is all about timing. Four years have passed since the agreement was signed and the U.S. is ready to effectuate it after ratification. Korea has had enough discussion for its part. The Democratic Party apparently used the investor-state dispute clause as an excuse to reject ratification. Moreover, the U.S. and Japan seek to sign the Trans-Pacific Partnership, a proposed free trade bloc of ten nations. If the Korea-U.S. free trade deal takes effect late, the government might not be able to fully benefit from the agreement. Given that Korea heavily depends on trade, having the agreement into effect as soon as possible is crucial for the benefit of Korea.

If the Democratic Party sacrifices the accord for the sake of its own political interests, it should brace itself for public criticism. If its leadership pushes for rejection regardless of the opinion of members who favor ratification, this will also go against the will of the people. The ruling Grand National Party, which has a parliamentary majority, should also do its part. The best way is patient dialogue, compromise with opposition parties, and ratification of the bill under a consensus. If this is practically impossible, however, the ruling party should find another option under the due process of parliamentary democracy. This is why the majority rule exists since everybody cannot be satisfied at the National Assembly.