United States reactions United States–Korea Free Trade Agreement

opponents

opponents make following arguments:

the exclusion of rice unfair korean rice exporters.
the agreement gives south korea time eliminate agricultural tariffs on beef.
the agreement says little services, u.s. strength , country s chief focus in bilateral negotiations.
south korea has long been accustomed selling cars, computers , ships around world.
south korea provides korean farmers levels of subsidy considerably higher farmers elsewhere in world.
in 2008, u.s. lawmakers opposed free trade deal south korea, citing imbalance in auto trade. wanted more steel shipments south korea.
the u.s. think-tank economic policy institute predicted lead loss of 159,000 jobs.


president obama makes last-minute edits speech announcing korus fta on december 4, 2010.



much attention has been focused on automobiles, hitherto major u.s. grievance , large component of bilateral trade deficit: during 2006, 4,000 u.s.-manufactured cars (excluding gm s daewoo subsidiary) sold in south korea while sales of cars manufactured south korean companies (including cars manufactured in korean-owned u.s. plants) in united states exceeded 800,000. south korean automakers sold 730,863 vehicles in united states in 2005, while american auto companies sold 5,795 in south korea, according commerce department figures.
the fta abolish taxes in south korea on large cars produced in united states, u.s. auto makers have long called impediment market access in korea .
when president obama committed move korea fta in 2010, democratic members of congress , democratic-affiliated groups criticized decision. president richard trumka of afl-cio said: “our negotiators should go table address imbalanced market-access provisions in agreement , revisit flawed investment, procurement, , services provisions well. president obama promised ‘smart, fair , strong’ trade policy. korus fta not meet standard, , work closely administration , congress improve agreement on behalf of american , korean workers. unless , until agreement amended address these concerns, oppose passage of u.s.-south korea trade agreement.
chairwoman louise slaughter (d-n.y.) of house rules committee said: “i surprised administration try slide poorly written trade deal past american public when congress has said deal not our economy or workers… try , advance korean fta when many workers still struggling find work move our economy backward. trade pact written republican administration corporate bottom line in mind. president has pledged work hand in hand congress, there significant changes must made in order free trade agreement gain broad congressional support.
immediately following passage of korus in october 2011, companies , industry groups voiced concern deal. according united states international trade commission, american textile industry expected lose jobs south korean manufacturers make same products @ 15 20 below cost american manufacturers.
citing concern on american jobs, allen e. gant, jr., president , ceo of textile manufacturer glen raven, said “we in favor of global trade, we’re not having agreements unfair u.s. textile industry.[...]the u.s. needs every single job can get.” others in american textile industry, has experienced sustained decline decades, stated there lack of commitment u.s. government preserve american textile manufacturing.

advocates

advocates make following arguments:

allowing south korea reduce tariffs on agricultural products on extended period earn u.s. sufficient preference in market, keeping out rival suppliers.
according u.s. international trade commission (itc), korus add minimum of $9.7 billion u.s. exports , boost u.s. gdp @ least $10.1 billion.
the u.s. chamber of commerce, business lobbying group in favor of fta, predicts korea fta create u.s. jobs.
u.s. financial services firms such citigroup have pushed korea fta. citigroup’s laura lane, corporate co-chair of u.s.–korea fta business coalition, stated “it best financial services chapter negotiated in free trade agreement date”.
on september 28, 2008, u.s. chamber of commerce s vice president of asia , president of u.s.–korea business council myron brilliant argued automobile trade imbalance between united states , south korea leveled u.s. congress passing korus fta. stated, includes strong commitments korean government address virtually every tariff , non-tariff market access barrier u.s. automobiles in korea raised u.s. auto industry during fta negotiations.
one poll in april 2007 indicated support fta @ 58.5%.
in march 2006, prior formal u.s.–korea negotiations, coalition of service industries (csi) stated 1 of primary objectives in negotiation related data processing services:
the agreement requires korea reduce car taxes based on engine displacement allegedly disadvantage u.s.-made cars, tend larger domestically-produced korean cars .
the obama administration has opposed these engine displacement taxes while vowing support domestic limits on greenhouse gas emissions.
more $1 billion worth of u.s. farm exports south korea become duty-free immediately. remaining tariffs , quotas phased out on first 10 years agreement in force. korus fta remove tariffs on 95% of consumer , industrial products between countries within 3 years. south korean industrial tariffs average 6.5% – , many 8% – making market access important issue u.s. industries.
the agreement require both countries enforce own labor , environmental laws, , ensures access legal mechanisms ensure enforcement.
south korean public companies receive opportunities privatization.
rice excluded, @ seoul s insistence. in return, south korea reduce 40% tariff on u.s. beef on 15 years.
the coalition of service industries testified “korean laws make difficult foreign companies outsource , offshore activities. these laws relate privacy (private data protection law , real name law). under protection , use of credit information law , presidential decree, foreign companies operating in korea prohibited transferring customer data whatsoever out of korea, purposes of processing data own affiliates. in addition, result of revision of insurance business act in may 2003, mandatory insurance companies maintain in-house basic human , non-human resources, including systems, necessary insurance business. these restrictions undermine government’s goal of making korea financial ‘hub’ increasing cost of operating in korea. these regulations should modified permit companies follow global operating models outsourcing , offshoring provided have existing practices protect consumer information.”




^ fta not way . international herald tribune. 2007-04-03. retrieved 2007-04-12. 
^ robert scott trade policy , job loss: u.s. trade deals colombia , korea costly, economic policy institute, 25 february 2010.
^ cite error: named reference iht 2007-04-03 invoked never defined (see page).
^ cite error: named reference washington post invoked never defined (see page).
^ readies korean business . asia times. 2007-04-04. retrieved 2007-04-07. 
^ statement afl-cio president richard trumka on u.s.–south korea trade agreement, june 29, 2010
^ slaughter asks white house not push korea trade deal forward – congresswoman louise slaughter. louise.house.gov (2010-06-28). retrieved on 2010-12-05.
^ appelbaum, binyamin (2011-10-11). foes of south korea free trade deal struggle heard . new york times. retrieved 2011-10-14. 
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^ u.s.–korea free trade agreement: potential economy-wide , selected sectoral effects. (pdf) . retrieved on 2010-12-05.
^ u.s. chamber testifies on korea fta s boon u.s. automakers . financial. 2008-09-25. retrieved 2008-09-28. 
^ 3 in 5 koreans support fta: poll . chosun ilbo. april 4, 2007. archived original on january 11, 2008. 
^ proposed south korea-u.s. free trade agreement (korus fta) (pdf). congressional research service. 2007-07-18. 
^ chang, richard s. (2009-01-26). obama vows follow california s lead in cutting emissions . new york times. retrieved 2010-05-23. 
^ song (송), gi-ho (기호) (2011-11-17). 한미fta는 어떻게 공공을 파괴하는가 . pressian (in korean). retrieved 2011-11-17. 
^ coalition of service industries written testimony on free trade agreement between united states , korea trade policy staff committee archived may 13, 2008, @ wayback machine., office of united states trade representative, march 14, 2006