Korea, China, Japan – East Asia FTA Negotiations to Commence

It has been reported in local news outlets that China, Japan and Korea have vowed to commence free trade negotiations and cooperate in alleviating the issues with North Korea. Korea’s Yonhap News has reported, in part, that: During annual summit talks in Beijing, South Korean President Lee Myung-bak, Chinese Premier Wen Jiabao and Japanese Prime Minister Yoshihiko Noda also agreed to start preparations to launch official negotiations on a three-way free trade agreement by the end of the year. The summit came a month after North Korea unsuccessfully launched a long-range rocket on April 13. Though the rocket fizzled soon after takeoff, the liftoff drew international condemnation as it broke a U.N. ban adopted over concerns such a launch could be used to develop missiles capable of carrying nuclear warheads. Concerns have since grown that Pyongyang could stage additional provocations, such as a nuclear test, which would be its third,

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Denuclearization of North Korea: Korea’s red herring by Tom Coyner (IPG’s Senior Advisor)

During the past couple of weeks the North Koreans have once again pulled the red herring across the trail in an attempt to distract the rest of the world from the fundamental Korean issue. Dutifully, commentators and government officials have editorialized and issued statements about terms and conditions for yet another possible round of negotiations. Please, would someone give us a break? Could someone in any concerned government service come out and state what’s really going on? Allow me to call out the emperors are not wearing any clothes. The problem that is at the core of the six party talks is not North Korea’s atomic weapons. The real issue is that the North cannot bring itself to recognize the legitimacy of another government on the Korean Peninsula. Everything else has been cascading down from this sticking point since the end of World War II, up to and including the

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North Korea Amends Foreign Investment Law

In a move to attract more investment from abroad, North Korea has amended the foreign investment law.   The amendment has been reported by the North Korean main news agency. The details of the revisions have not, yet, been publicly announced by the North Korean government, but previous changes have been less substantive and more political in nature. The amendments seem nothing more than a reaction to the Chinese dismissal of North Korea’s efforts to entice China to invest in a free trade zone near the border between North Korea and China.  North Korea can learn a great deal from the Chinese manner of developing the economy, however, in the past – North Korea has quickly retreated after brief periods of hopeful developments that the nation will open up to the South, China and the West.  Maybe China has finally found a rationale ear.  _________ [email protected] (c) Sean Hayes – SJ

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China Rejects North Korea Law on Developing of Two Border Islands

The tension between North Korea and China is rising.  China has rejected a proposal by North Korea to jointly develop two islands on the border of China and North Korea.  The islands are at the mouth of the Yalu River. The islands, Hwanggumphyong and Wihwa were intended to act as a free trade zone for China manufacturers.  The Chinese government rejected the offer because of alleged less than fair terms and possibly the insistence on the North to keep its nucleur weapons. It is anticipated that without aide from China and South Korea, the regime would have little hard currency and, thus, would be unable to purchase crude and other foreign commodities.  [email protected] (c) Sean Hayes – SJ IPG. All Rights reserved.  Do not duplicate any content on this blog without the express written permission of the author. [email protected]

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