ITC Report on United States-Republic of Korea Free Trade Agreement

The International Trade Commission (ITC) released its report on September 20 on the economic impact of the United States-Republic of Korea Free Trade Agreement, confirming that this Free Trade Agreement with the United States's seventh largest trading partner will provide critical benefits to the U.S. economy.

The results of the ITC's study show that the Agreement likely would increase U.S. agricultural and non-agricultural exports to Korea by $9.7-10.9 billion and boost U.S. GDP by $10.1-11.9 billion.

This Agreement will strengthen ties with a longstanding and critical ally that has served as a force for stability in a volatile region for over 50 years. Secretary Rice has said the Korea FTA is a vital "opportunity to help a key democratic ally in a rapidly-changing Asia to lock in economic reform and the rule of law. It is an opportunity to anchor our trans-Pacific vision of peace and prosperity for the 21st century." But, as the Commission's study confirms, the Agreement also will create new economic opportunities for the United States and anchor U.S. businesses' presence in a region where Japan and China have been playing a larger and larger economic role.

The U.S.-Korea Free Trade Agreement was signed by the United States and the Republic of Korea on June 30, 2007. The Agreement would eliminate virtually all barriers to U.S. exports and investment in the Republic of Korea. It opens up new opportunities for U.S. manufacturers, farmers and service providers; secures a more level playing field for American products; and improves intellectual property protection within the Republic of Korea.

The International Trade Commission, an independent federal agency with broad responsibilities on trade matters, is required to complete and submit to Congress and the Executive Branch an objective study of a free trade agreement's economic impact within 90 days of its signing under the Trade Promotion Authority.

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