effect of FTAs

consumers sould benefit from lowered tarrifs

there has been intensifying debate in Korean ont he pros and ocns of free trad aggremments ove th elast few yeasrs. Proponent claim that free trad deals will enable Korean businesses to explore oveseas markets moree actively  tahks to lowered tariffs. Opponents say FTAs will benefi large conglorerates and the rich at the expense of farmers and small- and  medium-sized businesses.

its's diffucult to say wihich side is right becasue our FTA his tory with major traind partnesr has been relatively short, More recently, howerver, there have been reports shwoing positive reuslts from our free trade packs..

Data released by the Korea Customs Service Sunday that Koea's exports to the United statas rose 11.3 percent durign the  frist tow months after the landmark free trade agreement wnet into effec. Exprts to the United States amounted to ...from March 15 TO..., while imports form the United Staates rose a meager 2 percent ..for the two-month period..

during the same period,Korea's total shipmetns fell 4 percent form a year ago to..., hit by falling demand amid Erurope';s deepening debt cirsis and Chnia's economic slowdown.

Drawing our particular attention i stha texports to the United States were led by products whose tariffs were lowered due to th FTA- petroleumproducts wer up 42 percent, followd by automobiles and aotu omponets. this mean that withoutthe Kora-U.S. FTA, Korea would ahve benn hit hard in its expots and trade balance.

the effect of the free trade accord was alsoe evident in Erurope. Acoording thethe Ministyr of Statety and Finance, shiipments of kOrean product to Europe whose tariffs were lowerec due to the FTA jumped 27percent in the second hafl fo laast year, althour Koeaa's total exports to EUREOPE Fell..

of course, its' too early to paint a rosy picture for FTAs with the short-term ruseult but we are positive about the impact they will have o our  economy, given that Korea relies on exports for nearly 70 percent of  its economic growth..

Nevertheless, there are tow points tobe heed. First of all, the government should not be in a hurry to concluede subsuquent deal with China and Japan. Our trade negotiateor will hav to be more careful in talks with China, takdin tinot accoutn ath a good numberof armers and fishersmen will be affecte negatively.

the governemtn alseo neds to take concree meassureto let Korean consumers benefit form lowerd tariffs in the wake of FTA implementaiton. So far, import prices of some products such as beer and orage juice remain high despite cuts in import duties as imperters and distrubutors make illict gains..