(Yonhap Interview) Germany expects G-20 summit to bolster free trade

By Kim Hyun

SEOUL, Feb. 16 (Yonhap) -- Germany hopes to see world leaders reject
protectionism and promote free trade as they formulate plans during this year's
G-20 summit in Seoul that is aimed at rejuvenating the world economy, the
country's envoy here said.

On the diplomatic scene, the G-20 talks slated for November will send a signal to
North Korea that its impoverished regime has no chance of survival unless it
endeavors to emulate the rise of capitalist South Korea, Ambassador Hans-Ulrich
Seidt noted in an interview with Yonhap News Agency.
"The most important goal for the German government is probably the same as the
Korean government," Seidt said, noting that Germany, like host South Korea, is an
export-oriented economy.
"We are both export-oriented nations and depend on a stable economic
environment," he said. "Recovery of the world economy will be possible only if we
try to foster an atmosphere of free trade among nations, to give a clear-cut
signal in Seoul that although there might be economic problems in some major
economies, we need a forward-looking trade policy."
The free trade agreement initialed last year between South Korea and the European
Union will be an "important" message to major economies that continue to maintain
trade barriers, the envoy noted.
Seoul officials expect the pact will be ratified this year, although it still
needs approval from the EU's 27 member states, some of which have voiced
opposition amid concerns that the deal could harm their automakers.
The EU is South Korea's second-largest trading partner after China and its No. 1
investor. Among EU members, Germany tops the list, with bilateral trade reaching
US$25.2 billion in 2008.
Germany believes the upcoming summit should also stress ending massive financial
stimulus programs the U.S. and major economies adopted after the 2008 global
financial meltdown. As the crisis originated from rising defaults on U.S.
subprime mortgages, the envoy said, leaders should adopt a coordinated approach
to better regulate global capital to prevent the recurrence of such an event.
"I believe that until the middle of 2010, we will see that the major economies of
this world are becoming more and more stable after the crisis. And that will be
the time to think about a common exit strategy," he said.
"The international financial markets need to be regulated in the best interest of
not only the U.S. economy, but in the best interest of the world economy."
The envoy viewed South Korea's hosting of the G-20 meeting as more than a display
of economic prowess, saying it also demonstrates the contradiction that exists
across the inter-Korean border, with the world's 13th-largest economy on one side
and a nuclear-armed, impoverished state on the other.
"What the G-20 summit will therefore demonstrate is that on the one hand you have
a strong, prosperous democratic country in Seoul, and on the other hand you have
an isolated, economically and politically weak regime," he said. "So if you think
about this trend, this will show in the future in one way or another North Korea
and the government in Pyongyang will have to change completely, and that their
current system has no chance of surviving in the 21st century."
Looking back on its tumultuous industrialization after the Korean War, South
Korea is able to speak on behalf of many developing nations not represented in
the summit, but it doesn't need to be "too modest" about its profile, the envoy
noted.
Korea "has experience in development that could be useful and could be an example
for many other developing countries. But I still feel our Korean friends are too
modest, characterize themselves as a country that does not belong to highly
developed countries," he said.
"I like very much the sensitive Korean attitude. But (the country) can be proud
of its achievements ... you are too modest."
hkim@yna.co.kr
(END)

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