(August 25, 2010) The California Chamber of Commerce and the California Coalition for Free Trade—which now boasts nearly 100 members—are voicing strong support for approval of the pending U.S.-Korea Free Trade Agreement (FTA).

“California businesses and their employees will benefit greatly from the increased trade the U.S.-Korea FTA will bring between California and its fifth largest export market, Korea,” said Allan Zaremberg, CalChamber president and CEO.

“This agreement will be the biggest free trade pact the United States has reached since it entered into the North American Free Trade Agreement. Agree¬ments like this proposed FTA ensure that the United States will continue to gain access to world markets, which will result in an improved economy and additional employment of Americans,” Zaremberg said.

After a year-and-a-half of negotiations, the U.S.-Korea FTA was signed on June 30, 2007. Since then, it has been awaiting Congressional approval.

Benefits

Korea is a significant market for U.S. small and medium-sized companies, which make up a majority of U.S. businesses exporting to Korea. Passage of the U.S.-Korea FTA will eliminate tariffs and other barriers to trade in goods and services, promote economic growth, enhance trade between the United States and Korea, and help expand market access in Korea for U.S. farmers, manufacturers, service providers and financial services firms.

In 2009, California exported $5.9 billion to Korea. Korea is a $1 trillion economy and is the United States’ eighth largest goods trading partner. Korea’s commercial relationship with the United States is largely complementary. In 2009, two-way trade between the two countries topped $69 billion. In 2009, U.S. goods exports to Korea were $28.6 billion, a slight decrease from the previous year. Under the FTA, more than half of current U.S. agricultural exports to Korea will become duty-free immediately, including high-value agricultural products such as almonds, pistachios, wine and cherries. For many other key agricultural goods, such as pork and citrus products, the FTA will provide unparalleled access to the South Korean market and its prosperous consumer base. 

Action Needed

The CalChamber is urging members of the business community to contact California congressional representatives before September 10—the close of the congressional summer district work period—and urge support for the US-Korea FTA.

For further information, visit www.calchamber.com/korea.

Staff Contact: Susanne Stirling