US-Korea FTA

In a report by the US-Korea Business Council titled The U.S.-Korea Free Trade Agreement, Economic Opportunity, Strategic Imperative, the Council argued that the FTA will spur America's economic growth, competitiveness and prosperity.

By removing obstacles to trade and investment with Korea - one of America's most important trading partner - the FTA will also generate new growth and jobs all across the United States. Once the FTA is ratified, nearly 95 per cent of bilateral trade in consumer and industrial products will become duty free within three years, while tariffs on almost all goods will be eliminated within 10 years.

Apart from the economic imperative, the Council also pointed to the importance of security considerations. Korea is said to be a close and long-standing US ally and one of America's strongest partners "in advancing regional and global security." Besides, the FTA is also a powerful display of unity between the US and Korea "as our two countries work together to address regional security challenges and promote shared strategic goals."

Once the FTA is ratified, Korea will expand market access in financial services, telecommunications, broadcasting, express delivery, legal, and other major sectors. It will implement clear, consistent, and predictable regulatory and rule-making procedures across all sectors of its economy.

Korea will also strengthen its protection and enforcement of copyrights, trademarks and intellectual property rights, as well as simplify and expedite customs procedures. Korea must also fully reopen its market to all US beef imports before the FTA will be submitted to Congress for approval.

If the FTA is ratified, Korea will, among other things, immediately eliminate its 8 per cent tariffs on US vehicles, eliminate discriminatory aspects of Korean auto taxes on the basis of engine size that disproportionately affect US autos, and ensures that it will not impose any new engine displacement taxes.

Turning the to what it calls "the cost of inaction", the report had this to say.

- US businesses and farmers would not only lose new access to the Korean market but also could lose market share as Korea concludes other bilateral trade agreements with global competitors.

- There would be an adverse effect on the overall US-Korea strategic partnership at a critical moment in our countries' efforts to increase challenges to security and stability on the Korean Peninsula and in Asia.

- It would undermine US leadership and credibility in promoting open markets and fair competition not only in Korea but globally, set back vital US geo-strategic goals, and undercut US global economic competitiveness.