(August 5, 2008) The California Coalition for Free Trade, a California Chamber of Commerce-led coalition — which now boasts more than 55 members — today urged Congress to approve the 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 over a decade ago. Agreements 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.”
President George W. Bush will be in the Republic of Korea to meet with President Lee Myung-bak to discuss regional and global security issues as well as their commitment to getting their respective legislatures to ratify the U.S.-Korea FTA. The recently concluded trade agreement with Korea is a big win for the California and U.S. economies. Its passage will eliminate tariffs and other barriers to trade in goods and services, promote economic growth, and enhance trade between the United States and Korea.
Korea is a $1 trillion economy and is the United States’ seventh largest goods trading partner. Korea’s commercial relationship with the United States is largely complementary.
In 2007, two-way trade between the two countries totaled over $82 billion and U.S. goods exported to Korea were $34.7 billion, a steady increase over the previous five years. In 2007, California exported $7.5 billion to Korea.
By giving U.S. exporters a leg-up in the world’s 10th largest economy, the agreement with Korea will enhance the ability of U.S. companies to compete in the dynamic Asian economy.
For California, the FTA would be a big win. According to the International Trade Administration in the U.S. Department of Commerce, computer and electronic products accounted for $2.3 billion of California’s merchandise exports to Korea in 2007. With immediate removal of many of these related tariffs, exports will become more competitive and affordable to Koreans. California’s exports of machinery also will benefit from U.S.-Korea FTA reductions as machinery manufactures accounted for $1.4 billion of the state’s merchandise exports to Korea in 2007. Transportation equipment accounted for $590 million of the state’s export sales to Korea in 2007 and most of these duties also would be eliminated immediately. In addition, tariffs and other barriers would be eliminated on most agricultural products produced in California. From pharmaceuticals to pistachios – the U.S.-Korea FTA is a win for California.
In August 2007, CalChamber hosted his Excellency Lee Tae-sik, Korean Ambassador to the United States, where he enumerated the benefits of the U.S.-Korea FTA California businesses.
“We have a historic opportunity to create the third largest free trade area in the world after the European Union and the North American Free Trade Agreement,” said Ambassador Lee. “The relationship between our two countries is very special. This free trade agreement is very comprehensive. The agreement covers the full range of trade related areas from goods and services to intellectual property rights, competition, labor and the environment. The United States should not miss this opportunity to advance into the Korean market before others."
For more information on the U.S.-Korea FTA visit CalChamber’s trade issues page at,
www.calchamber.com/international/USKoreaFTA.
The California Coalition for Free Trade is a group of California companies and business organizations working to secure Congressional approval of the Free Trade Agreements with Colombia, Panama, and South Korea.
Action Needed
The CalChamber is urging members of the business community to contact their Congressional representatives and ask to to support the U.S.-Korea FTA. For a sample letter visit, www.calchambervotes.com.