Free trade agreement finally passes

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Free trade agreement finally passes

The Korean and United States legislatures finally passed the Korea-U.S. free trade agreement this year after a more than four year impasse since its initial signing. The main chamber of the National Assembly broke out into a violent melee in the process.

Phase two of the battle may be looming on the horizon as opposition groups are bidding to use the legislative and presidential elections next year as a referendum on the ratification’s repeal.

The passage of the 2007 deal in the National Assembly in November faced strong resistance from the opposition, which said a clause to protect investors would work against local companies as opposed to their American counterparts.

The ruling Grand National Party railroaded the FTA through the opposition, which mobilized tear gas in its attempt to block the bill.

FTA proponents say the passage is a trophy for President Lee Myung-bak, who has made Korea a major free trade player. Korea, the only Asian country signing FTAs with both the U.S. and the European Union, now has free trade agreements with nations that control more than 60 percent of the world’s economy.

U.S. members of Congress initially opposed the pact, claiming the beef and auto industries in the U.S. would suffer significant damage, but opposing voices slowly subsided after the two nations retouched the pact in December last year.

Both chambers of the U.S. Congress approved it almost unanimously in October in time for President Lee’s state visit to the U.S.
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