[Editorial] Seoul mayor and FTA

It is natural that Seoul Mayor Park Won-soon, now in his second week in office, does not have a full grasp of the bounds of his duties and powers, let alone the scope of his public mission. So, he needs to be reminded that while Seoul is the political, economic and cultural center of the Republic of Korea, it is still just one of the 16 major divisions of the country and that there is a categorical difference between the central and local governments.

In this sense, Park’s “statement of opinion” on the Korea-U.S. free trade agreement that he sent to the Ministry of Foreign Affairs and Trade and the Ministry of Public Administration and Security on Monday drew our concern. There was no such precedent of a local administration chief expressing his opinion on a politically sensitive national issue although he said he had to deal with any significant impact the FTA has on Seoul citizens.

Park called for, among others, a “review” of the investor-state dispute (ISD) settlement provisions in the Korea-U.S. FTA on the grounds that an American investor may sue Seoul City in the event it incurred losses because of its administrative policy and that such a suit could burden Seoul citizens. The new mayor exposed his lack of understanding about how the international system works for the settlement of ISD cases.

He demanded that the central government consult with Seoul City before the FTA is ratified because the trade pact with the United States would cause a reduction in tax revenues and bring a difficult business environment for “300,000 small-time retailers” in the capital city. If the Korea-U.S. FTA is to cause adversity to small businesses in Seoul, the same can be said of those in other cities and provinces, and this is the reason why the National Assembly has to deliberate on the FTA bill. Already, the central government promised a reimbursement of 29 billion won to Seoul City to cover reduced automobile taxes.

Park was elected as an independent candidate, although he was supported by the Democratic Party and other opposition groups. His emergence as a strong challenger to the mayoral office without any party affiliation was possible because of the people’s disillusionment with the perennially warring partisan politics. By siding with the opposition in the ongoing FTA showdown, Park disappointed many who expected him to remain apolitical.