|
U.S. Policy Perspective
by Caroline G. Cooper
U.S. Department of Agriculture Releases its Outlook for Korea:
Four times a year, the Economic Research Service of the U.S. Department of Agriculture releases Outlook for U.S. Agricultural Trade. The June report notes that for FY1999, total U.S. exports are expected to reach $49 billion. Much of this can be attributed to "a more stable world economic situation and the beginnings of a recovery in Asia." The report notes that exports to Korea have already increased to $2.2. billion, particularly in the areas of meats and feed stuffs. Meat exports to South Korea have increased 59% in quantity and 19% in value. Corn exports have increased by more than 140% in quantity and 80% in value. To help U.S. exporters expand their operations in Korea, the Commodity Credit Corporation has extended $1 billion in credit guarantees to Korea. Last month, credit guarantee approvals for sales of commodities totaled $269 million.
U.S. and Korea Reach Accord on DRAM Trade, Despite Preliminary Dumping Ruling:
On June 10, the USTR announced that Korea has joined the United States, Japan, Taiwan and the European Union to endorse a Joint Statement on Semiconductors. Based on the 1996 U.S.-Japan Joint Statement, the June 10 agreement requires all signatories to send private and public sector representatives to meetings of the World Semiconductor Council (WSC), as well as annual governmental meetings to discuss recommendations of the WSC; commits governments to ensuring barrier-free trade in semiconductors and non-intervention in semiconductor production; as well as recognition of all relevant WTO accords. This comes just one week after the Department of Commerce made a preliminary antidumping duty determination against three Korean dynamic random access memory semiconductor producers. If a final determination is made on October 4th, the G5 Corporation and Hyundai Electronics Industries could face duty orders as high as 13.11%. LG Semicon Limited could face duty orders as high as 10.67%.
USTR Says Reform of the Korean Steel Industry is Progressing "in the Right Direction":
In a May 10 letter to the Chairman of the Congressional Steel Caucus, Ralph Regula, USTR Barshefsky stated that the United States would not take Korea to the WTO over past indiscretions committed under POSCO's dual-pricing system. She indicated that an April letter from the Korean Government updating USTR on steel trade issues represented "meaningful movement in the right direction on a range of priority issues." Efforts taken to reform the steel sector include the privatization of POSCO through the sale of the Korea Development Banks's shares in POSCO during 1999, the elimination of limits on individual company ownership in POSCO by 2001, and the sale of company interest in sales agents. Regarding the sale of Hanbo steel, the government assured USTR that the sale will not be financed by any "government entity." Finally, the Korean Government made assurances that it will not intervene in POSCO operations, refrain from providing subsidies, and that the Korea Fair Trade Commission will act as a "watchdog" in the steel sector.
|
|
