September 24, 2007

FTA to increase US exports to South Korea 

South Korea's free trade agreement (FTA) with the United States is seen to increase US gross domestic product by as much as US$12 billion and its merchandise exports by as much as US$11 billion.

In a report submitted to US President George Bush and the Congress by the US International Trade Commission on Thursday (September 20), the FTA will have South Korea's imports from the US to reach US$6.4 billion to US$6.9 billion.

The report said that the FTA, if fully implemented, is "expected to affect the US-Korea trade and investment relationship substantially, including bilateral trade in goods and services, procedures governing trade and investment, and the regulatory environment."

Among other rosy predictions, the report indicates the deal's effect on US output and employment would be negligible, citing the far larger US economy relative to South Korea's.

Still, Congress, particularly its Democratic members, hasn't shown much enthusiasm for the pact, owing to what they view as a lack of access to Seoul's auto and beef markets. Several members have vowed to vote against it unless Korea fully reopens its market to US beef.