US cos create secure & stable investment environment in Korea

21 Sep '07

2 min read

The U.S.-Korea FTA Business Coalition applauds release by the U.S. International Trade Commission (USITC) of its report on the likely effects of the U.S.-Korea Free Trade Agreement (FTA) on the U.S. economy.

According to the USITC report, when fully implemented the U.S.-Korea FTA would likely increase U.S. GDP by $10.1 billion to $11.9 billion by removing tariffs on U.S. goods exported to Korea, and would increase U.S. merchandise exports to Korea by $9.7 billion to $10.9 billion.

In particular, the report found that the FTA would substantially increase exports of many U.S. agricultural products to Korea, and that exports of U.S. machinery, electronics, and transportation equipment to Korea would also grow.

The USITC report also forecast that U.S. services exports to Korea, including exports of financial, telecommunications, audiovisual, and other services would likely increase as a result of the new market access, national treatment, and regulatory transparency provisions in the FTA.

Additionally, the report found that trade and investment would increase under the FTA by reducing transaction costs for U.S. companies that export to Korea, creating a more secure and stable investment environment in Korea, and by strengthening Korean IP protections and enforcement.

“The USITC report provides yet more evidence of how substantially U.S. businesses and workers in every economic sector will benefit from the U.S.-Korea FTA,” said Ted Austell, Vice President, Trade Policy, The Boeing Company, and a coalition corporate co-chair.

“The ITC's findings underscore how important an opportunity this agreement is for U.S. growth and competitiveness, and we call on Congress to move forward on this agreement as soon as possible.”

The U.S.-Korea FTA Business Coalition is a broad-based organization of over 500 U.S. businesses and trade associations working to secure the approval by Congress of the U.S.-Korea FTA.

US Chamber of Commerce

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