Race for Success on a Level Playing Field

Given the commitment of the nation and the potential of the market, there is every reason to believe that Korea represents a great potential for import cars. The nation wants and needs a level international playing field to sell its cars in the world's markets as well as in its domestic market. In order to achieve a level playing field, it is necessary to have a twin strategy of cooperation and competition, in which the capability of the local auto industry is raised to international standards. As a result, the attitude of the corporate and government leadership is to build international partnerships for mutual prosperity.

As Korea has been one of the world's greatest beneficiaries of free trade, it is only natural that it is a strong supporter of the WTO's Doha Development Agenda (DDA), which is designed to promote freer trade and open new markets around the world.

As Hwang Doo-Yeon, Minister for Trade at the Ministry of Foreign Affairs and Trade, recently stated, “As one of the major trading nations, Korea takes its global responsibilities very seriously. Now more than ever, we are doing our best to be a strong partner in the global trade system.” In addition to its commitment to the multilateral approach, Korea includes pursuit of free trade via bilateral channels. For example, it recently concluded the successful negotiation of a free trade agreement (FTA) with Chile and is talking with Japan to define issues to be agreed in a Korea- Japan FTA.

Korea also is interested in concluding a free trade agreement with the United States. Following the fifth Korea-U.S. Business Council meeting in Seoul on June 4 of this year, both the Korea Chamber of Commerce and Industry and AmCham called for the early launch of FTA discussions. “A Korea- U.S. FTA would expand the exports of both countries,” noted AmCham Korea President Jeffrey Jones. Korean automakers are also rallying behind the drive for a Korea-U.S. FTA.

The Doha Development Agenda and FTAs have significant implications for the auto sector. In particular, as a member of the global trade network, Korea is solidly behind the principles of fair competition, open markets and a level playing field.