South Korea's refusal to assert its position as a developing country within the World Trade Organization (WTO) is that it is more in the interests of the United States to have a smooth relationship with the United States than with the WTO negotiations, which may come in the face of constant pressure on WTO reforms. I decided it was helpful.
The benefits of the existing WTO negotiations remain unchanged, and if you insist on developing country status as the deadline for determining the 232nd article in the US Auto Trade Expansion Act is short, you will lose more.
The whole country may benefit from not taking WTO status as a developing country, but the challenge remains how to protect the agricultural sector, which is the only country that has been recognized as a developing country in the future, and relieve farmers' opposition.
In the WTO, developing countries follow a 'self-declaration' method in which member states themselves determine whether they are developing.
From an external point of view, even if you are an advanced country, if you claim that we are developing countries, we are developing countries.
The preferential provisions of developing countries in the WTO agreements and decisions were 155 as of last year.
In a nutshell, developing countries can cut tariffs and subsidies less than developed countries, and take a longer time to tackle tariffs.
Korea maintains its status as a developing country through self-declaration, but has not benefited from developing countries except agriculture and climate change since joining the Organization for Economic Cooperation and Development (OECD) in 1996.
In the meantime, developed countries like the US have consistently raised questions about the status of developing countries.
This is because some countries with high economic development are unfair to claim the status of developing countries and have favorable conditions compared to developed countries.
The unanimous WTO negotiations have been stalled for a long time, primarily due to the conflict between developed and developing countries.
The problem has been a hot potato in earnest, when US President Donald Trump has publicly urged the WTO to deal with developing countries on July 26 (local time).
At the time, Trump presented four criteria that are difficult to recognize as developing countries: ▲ OECD member countries, 20 major member countries (G20), ▲ high-income countries classified by the World Bank, and ▲ over 0.5% of the world's trade in goods.
President Trump's remarks are actually aimed at China, but Korea is the only country that meets all four criteria, which puts more pressure on Korea.
An official from the government said, "If Korea remains a developing country, it is likely that China and India will use Korea as an excuse." In this case, the US-China fight may turn into a US-Korea fight. " Said.
After President Trump's remarks, Brazil, Singapore, the UAE, and Taiwan will no longer claim to be WTO developing countries. I made a decision.
The government said in a press conference after the Ministerial Foreign Ministers' meeting on the 25th. "There is a good chance that it will result in the loss."
The deadline set by President Trump was the 23rd.
South Korea's decision not to assert its status as a developing country came two days later, but it appears to have already been discussed with the United States.
Mr. Myung-hee, head of trade negotiations, visited Washington, DC, last week to talk about the WTO developing nations with Robert Wright-Heisers, USTR, and Larry Kerr, meeting with the White House National Economic Committee.
At the meeting, Mr. Yu reaffirmed that the United States has a substantial awareness of the problem with developing countries in the WTO and adheres to the need for reform.
Yoo said that he would not continue to insist on the status of developing countries, while also conveying concerns such as a backlash from the agricultural sector.
On the 24th, Yu met with reporters at Incheon International Airport. "The United States hopes that Korea will no longer insist on the status of developing countries in current and future negotiations." I have communicated that there is a need. "
The decision strengthened Korea's claim to exclude the US section 232 of the Automobile Trade Extension Act.
Section 232 of the Trade Extensions Act provides a means for urgently restricting imports or imposing high tariffs if foreign-imported products are considered a threat to US national security.
Earlier, the US Department of Commerce filed a report to President Trump last February to investigate the impact of imported vehicles and components on US national security, and Trump would make a final decision by May 18, when the report review period ends. .
However, in a declaration issued at the White House on May 17, the day before the deadline, it said it would postpone a 180-day imposition of tariffs on cars and components imported from the European Union, Japan and elsewhere.
The deadline for deferred action is 13th of next month.
Although the prevailing observation that Korea will be excluded from the 232-car measure was already under the influence of the amendment of the Korea-US Free Trade Agreement (FTA), this possibility has grown even more in response to US demands for developing WTO countries.
Yoo urged the US to remove South Korea from the 232-car measure.
The issue of WTO developing countries is about future negotiations, so the benefits of existing negotiations will remain the same.
It is not known when the WTO negotiations will be held in the face of China and India.
The government also presupposes having the right to negotiate flexibility to protect sensitive areas of agriculture.
A government official said, "We will always open our eyes and ears to listen to the farmers and take on the necessary roles."
(Photo: Getty Images Korea, Yonhap News)
Benefits of WTO Developing Country Status… Trade benefits in the US are judged to be more profitable
2019-10-25T07:03:47.378Z
South Korea's refusal to assert its position as a developing country within the World Trade Organization is that it will be more beneficial to the interests of the United States to have a smooth relationship with the United States than with the WTO negotiations, which may come in the face of constant pressure on WTO reforms. Judgment was made.
Source: sbskr