Press Release

Secretary Gutierrez Statement on ITC Report on Korea Trade Agreement

WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez today issued the following statement on the release of the U.S. International Trade Commission (ITC) Report on the potential economic effects of the United States-Korea Free Trade Agreement (KORUS FTA).

“Opening markets is a key element of President Bush’s pro-growth agenda and this U.S. International Trade Commission study confirms the Korea FTA will open the Korean market to U.S. goods and services providers.

“Korea is a market of over 49 million consumers with per capita income of over $20,000 per year, where our U.S. businesses, farmers, ranchers and service providers have the potential to grow exports.

“This FTA would benefit the U.S. economy by giving American exporters the tools to expand and grow in this large developed market with major commercial opportunities. It would also help solidify the overall U.S. relationship with Korea, a key partner in the dynamic Asia-Pacific region.

“This U.S. ITC report helps create a better understanding of the broad and deep benefits the FTA provides to the United States.

“The Korea FTA, along with pending FTAs with Peru, Colombia and Panama, will give U.S. manufacturers and service providers the opportunity to compete on a level playing field to boost exports and create jobs.

“U.S. exports are now at a historically high level and were a very important contributor to last quarter's real gross domestic product growth. Companies that export pay a higher wage that benefits our American workers here at home. The end result is a higher standard of living for American families."

Background
The United States International Trade Commission (ITC) today released the results of a five-month study on the potential economic effects of the United States-Korea Free Trade Agreement, which was signed on June 30, on the potential economic effects of the United States-Korea Free Trade Agreement. The report was requested by the U.S. Trade Representative upon conclusion of FTA negotiations on April 1, 2007, and is required under the Trade Promotion Authority legislation. The results of the study indicate that this FTA will have a positive impact on U.S. economic growth, and that several important sectors of the U.S. economy will experience increased exports to Korea and enhanced competitiveness in the Korean market.

An ITC study conducted in 2001 and a study released earlier this year by the Korea Economic Institute and the University of Michigan both concluded that the U.S.-Korea FTA would have a positive impact on the U.S. economy and would boost U.S. exports to Korea. The Korea FTA is one of four trade agreements that the United States has signed with key trading partners but that have not yet been approved by Congress. The other agreements are with Peru, Colombia, and Panama.

The United States is Korea’s third leading trading partner, accounting for 13.3 percent of Korea’s exports and supplying 10.9 percent of the country’s imports in 2006. Korea-U.S. bilateral trade has increased by more than one-third in the past five years from $58.1 billion in 2002 to $78.2 billion in two-way trade in 2006.

For more information please visit, http://www.tradeagreements.gov.