[Intl-tobacco] Important: USTR Starts First-hand Probe in Korea

[Robert Weissman]

If anyone knows about the apparently controversial "licensing regulations"
referenced below, please contact me.

--
Robert Weissman <rob@essential.org>
Essential Information
P.O. Box 19405, Washington, DC 20036, USA
Tel: 1-202-387-8030
Fax: 1-202-234-5176
www.essential.org


USTR Starts First-hand Probe in Korea
by Lee Jun / junlee@chosun.com
Source: Chosun Ilbo, Friday, 3/23/01

  As conflicts over trade between the United States and Korea are expected
to worsen with the onset of the Bush administration, observers have called
for immediate action against the recent investigation by the US Trade
Representative (USTR) to uncover unfair trade practices by Korea.

The Ministry of Finance and Economy (MOFE) revealed Friday that USTR
officials, including assistant secretary Barbara Weisel, have been
conducting a fact-finding investigation in Korea regarding the pending
trade issues between the two countries. So far, USTR officials have
reportedly visited 7 government agencies and met with related US trade
representatives in Korea.

The US officials reportedly questioned the MOFE as to whether or not the
corporate bond purchase by the state-run Korea Development Bank for the
Hyundai Group, including Hyundai Electronics, was a special favor.
Moreover, they asked about the amended tobacco licensing regulation,
concerned about those clauses which may be disadvantageous to foreign
tobacco companies. As for automobiles, steel and semiconductors, USTR
officials questioned the Ministry of Commerce, Industry and Energy about
unfair trade practices of domestic companies, including subsidy payments
by financial institutions.

MOFE officials remarked, "We believe that this USTR visit is a precursor
to their next trip scheduled for the end of March which coincides with the
publication of their report on trade barriers."