WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today issued the following statement following his meeting with South Korean Commerce, Industry, and Energy Minister Kim Youngju.
“My meeting today with South Korea’s Commerce Minister Kim provided a good opportunity to discuss both the U.S.-Korea bilateral economic relationship and the U.S.-Korea Free Trade Agreement. The Republic of Korea is the seventh-largest market for U.S. exports ($34.2 billion in 2006) and an important economic partner.
“The strength of our relationship is reflected by the groundbreaking U.S.-Korea Free Trade Agreement, our first FTA in North Asia and the most commercially meaningful trade deal the U.S. has signed in nearly 15 years.
“This FTA would benefit the U.S. economy by giving American exporters the tools to expand and grow in this large developed market with major commercial opportunities. It would also help solidify the overall U.S. relationship with Korea, a key partner in the dynamic Asia-Pacific region.
“I noted to Minister Kim that for this FTA to be possible, it is essential that Korea open its market to American beef, and for Korea to base its beef import measures on international standards and relevant scientific evidence.” Background The United States and the Republic of Korea (South Korea) entered into Free Trade Agreement (FTA) negotiations in February of 2006 to increase access to Korea’s dynamic markets for American exporters, service providers and investors. The U.S.-Korea FTA, the most commercially meaningful FTA since NAFTA was signed in 1992, would provide state of the art protections for Internet commerce and intellectual property, eliminate tariffs on 95 percent of goods traded between the two countries within three years, address non-tariff barriers in a variety of sectors, and help drive growth and innovation in our dynamic technology sectors. The Agreement was signed on June 30, 2007, but it must be approved by Congress before it can be implemented. Korea’s GDP was valued at over $1 trillion on a purchasing power parity (PPP) basis in 2006, making it the 11th-largest national economy in the world. South Korea’s 49 million consumers, with per capita incomes of $20,000, comprise a significant market for U.S. exporters.
According to a study released by the U.S. International Trade Commission (ITC) in September, U.S. merchandise exports to Korea would grow by $10 to $11 billion as a result of the elimination of tariffs and tariff-rate quotas under the U.S.-Korea FTA. The ITC also concluded that U.S. services exports, which were valued at $10.3 billion in 2005, would likely increase due to increased market access, equal treatment for U.S. firms, and enhanced regulatory transparency.
The United States is Korea’s third leading trading partner, accounting for 13.3 percent of Korea’s exports and supplying 10.9 percent of the country’s imports in 2006. U.S.-Korea bilateral trade has increased by more than one-third in the past five years, from $58.1 billion in 2002 to $78.2 billion in two-way trade in 2006.
For more information please visit, http://www.tradeagreements.gov.
Source: U.S. Department of Commerce
