Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Remarks to the American Chamber of Commerce in Korea
Seoul, South Korea

Thank you for that kind introduction. I’m pleased to have the opportunity to speak at this historic time in the Korean-American partnership.

When I was last in Seoul, our negotiators were crafting an agreement that would be one of the most comprehensive and significant trade agreements for the U.S. in 15 years. At that time I emphasized the need for political will to overcome obstacles. Both sides rose to the occasion and achieved a remarkable outcome.

Less than a month ago, President Lee and President Bush stood shoulder to shoulder heralding a new era in U.S.-Korean relations. In a few months they will meet again here in Korea to continue the dialogue started in Washington, to capitalize on the extraordinary synergy our two economies represent and reaffirm the close alliance we maintain in this critical part of the world.

As he clearly stated at Camp David, President Bush is strongly committed to securing approval of the KORUS FTA this year. Many in this room have had a hand in encouraging these developments.

I know the President appreciates the organizations that have actively supported the summit and the KORUS FTA, especially the sponsors of today’s lunch: the American Chamber of Commerce, the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Korea Employers Federation, the Korea Federation of Small and Medium Businesses, and the Korea International Trade Association.

Each has had critical roles in nurturing our bilateral ties. Now we must work together to get the KORUS FTA across the goal line.

In war and in peace our countries have stood by one another. During my visit this week I will have the privilege of visiting the DMZ, a reminder of what’s at stake in our relationship, and just how stark the differences are between an authoritarian regime and that of a free, democratic South Korea.

The depth of our alliance could be no clearer than in viewing American and Korean soldiers standing side-by-side facing the DMZ. Koreans have served beside Americans in Iraq, Afghanistan and in other conflicts and peacekeeping operations around the globe.

And our friendship is further strengthened by people-to-people exchanges, including tens of thousands of students, long-term investments in each other’s economies of $31 billion; and trade flows that are approaching $100 billion a year.

Yet it is the hard work, dedication and smart policy choices of the Korean people that have made Korea’s tremendous accomplishments possible.

In a generation, Korea has been transformed. Twenty-five years ago GDP per person was less than $2,000. Today it is more than $20,000.

This is impressive. To get to the next level of advancement, it will take the kind of reforms and openness the KORUS FTA will bring.

Lowering barriers to trade through free trade agreements is more important than ever for the United States. Trade was the second largest contributor to America’s GDP in 2007, and in the first quarter of this year exports kept our economy growing, offsetting weaker areas.

By strengthening a strategic alliance in Asia, based on reciprocity and a desire to compete on an even playing field, we show the world that the U.S. remains open, leading and engaged. The KORUS FTA will be our largest bilateral free trade agreement outside of North America.

For Korea, this agreement will enable your great country to take growth and prosperity to the next level. Korea will gain permanent, preferential access—free of tariffs—to the largest market in the world.

With this agreement, both tariff and non-tariff barriers will be largely eliminated, investor rights will be strengthened, and access to customers will expand.

Both Korean and American consumers will see more choices and better prices on hundreds of items on store shelves and in their households.

Korea is already our nation’s seventh largest export market, and studies estimate we can expect an increase approaching $20 billion in two-way goods trade as a result of the FTA.

President Lee showed great leadership and took a very positive step when he decided to reopen Korea’s market to U.S. beef. This decision will bring Korea in line with international standards and science to benefit Korean consumers. We look forward to the full and quick implementation of this agreement. American beef is safe. Korea will get the exact same beef that we eat in the U.S. Millions of Korean-Americans, and Korean students, businesspeople and others eat beef in America.

Recently, I visited Members of Congress and spoke to businesses in many states. For each of those states, Korea is a vital trading partner. For example:

• In Alaska, South Korea is a larger export market than Canada;
• For Texas, it’s a bigger trading partner than any country in South America or Europe; and
• Californians sold $7.4 billion to South Koreans last year.

Those sales mean jobs, opportunities and new customers. Yet in spite of all these benefits, all three agreements pending before Congress—with Colombia, Panama, and South Korea—remain stalled.

Just over a year ago the Administration and Congress agreed on a way forward on all three pending FTAs. All three countries, including Korea, made tough decisions to implement changes with the expectations the FTAs would be considered by Congress.

These FTAs are too important to be set aside. Each deserves strong support both for the economic benefits, and for the signal they send to our democratic allies—as well as our adversaries—in key regions of the world.

In closing, we will continue to press our Congress to give Colombia a vote soon as soon as possible, and let me reaffirm the President’s commitment to securing approval of the KORUS FTA this year.

We must make it clear to those who would support economic isolationism in America—or in any country—that a step away from the global economy would have devastating consequences.

We will intensify the campaign to make the case for the benefits of the Korea FTA to ensure that it is not held up when the time comes for consideration by Congress.

While attention is turned toward trade, the voices of openness and engagement must be heard clearly and convincingly. It will require leadership from people who have worked on both sides of the Pacific to promote this agreement.

I call on the decision makers in both countries to once again marshal the political will to make the right decisions and bring this agreement to passage.

Enactment of our agreement with Korea would be a significant accomplishment for both countries, and would be the realization of our shared commitment to open markets, free trade and democracy worldwide. Thank you.