Five Fair Retaliations Against Breaking the April 17th Trade Agreement:

On April 17, 2008 the Lee administration of South Korea signed an agreement, which was reached on the consensus of both parties, thereby lifting a six-year ban of American beef from South Korean markets. Amidst a swirl of domestic turmoil against the decision, the South Korean government has taken several erratic and troublesome steps that suggest it could potentially break internationally recognized trade practices. In the event that the South Korean government chooses to renege on it’s April 17th agreement to uplift the ban on American beef, the United States government may (and should) retaliate with the following steps:

1.) An imposition of “Super 301” should take affect on the Korean economy. Under the Super 301 provision, economic retaliation against the exports of nations deemed “unfair trading partners,” will take place. South Korea is an exporting nation. This essentially means that a significant step to block Korean exports from the American market will be taken - the results of which could be potentially catastrophic for the South Korean economy.
2.) The Super 301 provision would also justify blocking a significant amount of exports from the Korean automotive industry to the American market. As a result, Hyundai, Kia, Daewoo, Ssang Yong Motors, and other major Korean automobile manufacturers would have no legal means to export their goods to American shores in the same quantities or with the same liberties they exercise today.
3.) Limiting imports of South Korean electronics to the American market. This includes the products of such technological giants as Samsung and LG – two companies that currently operate under unbalanced trade practices (in South Korea’s favor) with the United States anyway.
4.) Protective and/or prohibitive tariffs should be exercised strongly against other selected Korean exports to the United States.
5.) Scrapping further negotiations for the implementation of the KORUS FTA for the next 4-8 years.

It is this writer’s strong opinion that a clear and decisive signal needs to be sent to nations that are inconsistent or implement unfair trading practices in the international arena. South Korea, which has been a long-standing ally of the United States, has reaped the benefits of the American market for decades while maintaining strict domestic import practices that shut out American goods. If the April 17th agreement is scrapped, consider it the straw that broke the camel’s back.