Press Release

Statement of Commerce Secretary Gutierrez on Today’s Signing of the U.S.-Korea Free Trade Agreement

WASHINGTON—Commerce Secretary Carlos M. Gutierrez released the following statement applauding today’s signing of the U.S.-Korea Free Trade Agreement:

“This is the most commercially significant trade agreement for the United States in nearly 15 years and is another step toward fulfilling President Bush’s trade agenda to promote U.S. exports, promote economic growth and raise living standards.

“The U.S.-Korea FTA helps manufacturers, farmers and ranchers by eliminating nearly 95 percent of tariffs on bilateral trade in consumer and industrial goods within three years. Almost two-thirds of U.S. farm exports will be immediately duty-free when the FTA is implemented. The agreement also presents an outstanding opportunity for the United States to expand its role in creating a more peaceful and prosperous Pacific Rim.

“Korea represents an exciting market for U.S. companies. Last year, I participated in a clean-energy technology event in Seoul, Korea, that highlighted technology produced by Woodward Governor Company of Ft. Collins, Colorado. Such U.S. technology is delivering cleaner fuel for Seoul buses and cleaner air for the people of Seoul. This unique public-private partnership is an example of how trade is a win-win – U.S. workers get to sell clean air engines to South Korea.

“I want to congratulate the U.S. and South Korean negotiating teams, especially Ambassador Susan Schwab, for completing an outstanding free trade agreement that will benefit both nations. I look forward to working with Congress to ensure Americans benefit from this agreement as quickly as possible.”

Background
In February 2006, the United States initiated free trade agreement negotiations with Korea. Korea is the 12th-largest economy in the world, with a real GDP per capita expected to top $20,000 by next year. Korea is already the 7th-largest export market for U.S. products and services and our seventh-largest trading partner with bilateral trade topping $75 billion in 2006. The United States is Korea’s 6th-largest trading partner and is uniquely positioned geographically between Japan and China to be a springboard for U.S. economic interests in Asia.

The U.S.-Korea free trade agreement will open Korea’s broadcast market by allowing U.S. companies to invest up to 100 percent in this market within three years and allowing 100 percent investment in the telecommunications market within two years. It will also open significant economic opportunities for U.S. services exports include express delivery, legal, education, health and environmental services where the United States is highly competitive.

U.S. innovators will also benefit from greater protection of their intellect property rights through state-of-the art provisions for software, video, text and music. A bilateral committee will be established to monitor the commitments made on pharmaceuticals and medical devices, and a working group is being established to address any future automotive goods regulatory issues.