Tips for Successful Business Partnerships in North America

Under the Korean Constitution, the President has the right to make treaties. When the President, as the head of government, signs and ratifies a treaty, the text is published in the official gazette. The treaty is then incorporated into the Korean domestic legal system, with the same force as domestic legislation. According to the Government Organization Act, the Minister of Foreign Affairs and Trade is in charge of trade discussions and the signing of trade agreements with foreign governments.10 As a result, the Office of the Minister for Trade within the Ministry of Foreign Affairs and Trade leads and coordinates Korea's FTA discussions, which involve a variety of important ministries and organizations. Unlike the United States, the Korean National Assembly, the government's legislative branch, has no jurisdiction over trade negotiations and hence is not actively participating in FTA negotiations. However, treaties that fall within Article 60 11 of the Constitution require the approval of the National Assembly before being ratified by the President. An FTA falls under this category. It should be emphasized that a request for the National Assembly's assent to the ratification of a treaty is made after it has been signed. As a result, the Government (administration body) typically strives to involve the National Assembly in the process of its FTA negotiations by providing necessary information to its members to facilitate the consent procedure at a later stage. The "Presidential Directive on Procedures for the Conclusion of Free Trade Agreements (Directive)" establishes detailed rules that government officials must follow during FTA talks.

 12 The Directive oversees the whole negotiation process

including the pre- and post-negotiation stages, for every FTA that the Korean government enters into. According to the Directive, the Ministers' Meeting for External Economic Affairs (MMEEA) has the competence to make decisions on significant policy matters relating to Korea's FTA discussions with its partner nations. Such concerns include the selection of nations with whom Korea will negotiate free trade agreements (FTAs), the timing and process of such negotiations, the mandates provided to the negotiating team, and other crucial negotiation orientations. The MMEEA is chaired by the Deputy Prime Minister for Economy and Finance, with involvement from the key economic ministers. The Directive created three committees: the FTA Committee, a working-level subcommittee, and the FTA Advisory Committee. These three committees work together to develop FTA roadmaps, decide on Korea's key negotiating position for each FTA negotiation, and implement follow-up measures once an FTA is signed. The FTA Committee, chaired by the Minister for Trade and made up of Deputy Ministers from relevant ministries, is largely responsible for developing Korea's FTA strategy, supervising FTA discussions, and implementing any follow-up measures. The committee's subcommittees provide information on how the government promotes free trade agreements for the business sector. 

The FTA Committee collaborates with semi-official organizations such 

as the Korea Trade Investment Promotion Agency (KOTRA) and the Korea International Trade Association (KITA) to collect and disseminate company perspectives on FTAs. Many ministries have tight relationships with industrial organizations on FTA concerns, and these channels are used to promote FTAs. The "FTA EXPO" hosted at the COEX Center exposition hall in December 2007 is an excellent example of an FTA promotion, as it was aimed to present the public with FTA usage schemes and thorough FTA information. The FTA Advisory Committee, chaired by the Minister for Trade and made up of academic and industry specialists, advises the government on the pursuit of free trade agreements.13 According to pre-negotiation protocols, Korea's FTA partner and fundamental plan for implementation are drafted by the FTA Committee and approved by the MMEEA. 14 The FTA Committee makes recommendations to the MMEEA candidate nations for FTA partners based on economic feasibility studies conducted by domestic research institutions. Before beginning discussions, the Korean government often conducts a joint study with a potential FTA partner to assess the feasibility of an FTA15. However, the Directive does not require a collaborative study. Korea initiated negotiations with Chile following two preliminary consultations. During the joint research, questions such as the economic impact of the FTA, its scope and coverage, and negotiating mechanisms are typically examined. When a collaborative study or other type of preliminary consultation concludes that the proposed FTA is 

considered to be beneficial, the FTA Committee proposes to the MMEEA that 

FTA discussions begin. A public hearing must be performed prior to the MMEEA's decision, and the results should be reported to the MMEEA during its discussion. The MMEEA has the final say on whether or not to initiate the negotiations. This procedural requirement ensures that all interested parties and sectors have the opportunity to be fully heard by the Government before making any formal decision on the start of negotiations. When Korea first implemented the Korea-Chile Free Trade Agreement in April 2004, it was late to the FTA regionalism party. Since then, it has implemented trade liberalization through FTAs with several nations, "pushing forward synchronized multiple FTAs" with the policy goal of securing export markets and advancing the economy.16 Korea had four free trade agreements in place by October 2008: with Chile (April 2004), Singapore (March 2006), EFTA (September 2006), and ASEAN 9 (June 2007).17 Korea formally signed its free trade agreement with the United States in June 2007, and with India in August 2009. FTA negotiations with the EU, Canada, Mexico, and Peru are now underway, while a joint study on FTAs with the PRC and Mercosur has been concluded. Table 1 highlights the current status and progress of Korean FTAs.