Business and political leaders in South Korea, one of the world economic powers most dependent on trade, are closely watching rising anti-trade sentiment in the U.S. and other countries, its top diplomat to the U.S. said Thursday.
In the wake of the 2008 global economic downturn, South Korea was one of the most outspoken against nations responding with protectionist measures. Now, antipathy about trade is growing again. Efforts to lower barriers through free trade agreements, preferred status designations and multination deals like the Trans-Pacific Partnership are being challenged in the U.S. and other countries.
Ahn Ho-young, South Korea's ambassador to the U.S., said people in his country are keeping an eye on this shift in global attitudes. In the U.S., such sentiment has played out with all four of the leading presidential hopefuls expressing opposition to the Trans-Pacific Partnership, a deal led by the U.S. and Japan and that South Korea may join as soon as next year.
"At the same time, they do not take it with big apprehension," Ahn said in an interview at the start of a three-day visit in the Twin Cities. "The reason being, they understand it is part of presidential politics."
Ahn began the visit with a lunch at the University of Minnesota and a dinner with local business leaders, including Hubert Joly, chief executive of Best Buy Co. On Friday, he is the guest of honor at a lunch open to the public hosted by Global Minnesota. Ahn said he will meet with several dozen Korean War veterans there.
With exports accounting for more than half its economic output, South Korea depends on trade to generate income to purchase food and energy resources it doesn't have.
After contentious negotiations and a protracted ratification process, the U.S. and South Korea in 2012 enacted a free-trade agreement that, for the U.S., was the largest since NAFTA and, for South Korea, the largest ever.
South Korea has concluded several other similar agreements since, including with Canada and China.
South Korea has a robust protest culture and both labor and civic groups have demonstrated against certain deals and other aspects of the government's trade liberalization efforts. But the broader importance of trade is well understood.
"There are certain groups of people in Korea who don't necessarily share a supportive view about the liberalization of international trade and international economics," Ahn said. "But at the same time, we have been lucky that, in Korea, that part of the population who have that view has been relatively smaller."
China is South Korea's biggest trade partner and the country is in a delicate position as Beijing and Washington jockey for economic influence in the Pacific. If TPP fails, China is likely to press Asian countries to adopt a regional trading pact that it has proposed.
For South Korea, that will present another difficult choice. "When the United States leadership makes its very clear and firm that the United States will continue to lead the world, that is received with a high degree of, in a sense, relief on the part of South Korean observers," Ahn said.
He said the South Korean government must complete an internal process before formally taking steps to join TPP — and it will wait for Congress to make a decision.
"There are 12 countries negotiating TPP," Ahn said. "At the same time, everybody knows the position of the United States is the most important determining factor."
Evan Ramstad • 612-673-4241
