South Korean Ag Minister Urges More Steps to Cushion Farmers from U.S. FTA

South Korea needs to craft additional measures to protect local farmers from the impact of a free trade agreement (FTA) with the United States before parliamentary approval, the agriculture minister said.

The Korea-U.S. FTA, known as the KORUS FTA, was signed in 2007 but still needs to be ratified by the legislatures of both countries.

"As a new study on the effects of the Korea-U.S. FTA on the local industry showed increased damage from four years ago, the measures set up earlier to help protect the local industry must again be supplemented," Suh Kyu-yong said in a meeting with reporters on Wednesday.

An initial study, conducted four years ago when the deal was signed, had said the damage to the local agriculture industry from the free trade deal would amount to some 10.5 trillion won (US$9.64 billion).

The latest study published last week showed the damage will now amount to 12.7 trillion won, partly due to price increases and the local industry's growth over the past four years.

Suh, however, stressed the country's need to continue to seek new free trade deals despite the possible negative impact on its farmers.

"Our country's import-export dependency is at 87 percent (meaning 87 percent of its gross domestic product is generated by trade) so we must continue seeking FTAs," he said. "Only it is more desirable to pursue new FTAs after we first set up measures to protect critical sectors, such as rice."

The minister also stressed the need to set up a free trade deal with China, already one of the largest suppliers of food for South Korea, but said such a deal is not likely possible under the incumbent administration, which steps down in early 2013.