South Korea's new president, Lee Myung-Bak, told reporters in Seoul Monday that he supports the idea of creating a vast new free-trade zone, encompassing South Korea, Japan and China. "A free trade zone may be possible if each of the countries within the region works together," Lee said in an interview with foreign newspapers, Japan's Nikkei business daily reported. "By coordinating efforts, South Korea, China and Japan can maintain competitiveness in the global market. Japan should play a major role." South Korea has long been concerned that it is sandwiched between Japan, Asia's largest economy and a technological leader, and China, a rapidly growing manufacturing center. Lee's predecessor, Roh Moo-Hyun, negotiated a controversial free-trade deal with the United States, but that agreement has yet to be approved by the U.S. Congress.
Free trade talks between Japan and South Korea have been suspended since November, 2004, because of disagreement about how far to open agricultural markets. Both countries heavily protect their agricultural sectors. Lee, who took office in February, has sought to repair relations with Japan which were badly strained under Roh, who accused Tokyo of failing to atone for its 1910-45 occupation of the Korean peninsula. Lee is scheduled to visit Japan April 20-21.
Journal of Commerce
