Congressman Sandy Levin

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U.S.-SOUTH KOREAN FTA MUST TEAR DOWN HISTORIC AUTOMOTIVE TRADE BARRIERS AND OPEN MARKET ACCESS IN SOUTH KOREA
As Third Round of Negotiations over the U.S.-South Korean FTA Commence, Levin Warns that a Successful Trade Pact Must Significantly Open South Korean Automotive Market to U.S. Automotive Sector
 

(Washington D.C.)- As the third round of trade negotiations begin between the United States and South Korea, U.S. Rep. Sander Levin (D-MI), a senior member of the House Ways and Means Trade Subcommittee, today offered a stiff reminder to the United States Trade Representative (USTR) that a successful trade pact with South Korea must include significant market access for the U.S. automotive sector. Despite a letter to the Administration from several Members of Congress on the heels of the second round of negotiations, the Administration has refused to make clear that the most basic issue is eradicating South Korea?s trade barriers. 

"The Bush Administration continues to move in the wrong direction by failing to make it totally clear to the South Koreans that these unfair non-tariff barriers (NTBs) must be knocked over in any negotiations.  A successful trade agreement with South Korea needs more than empty promises or rhetoric in sectors, such as automobiles, that are of critical importance to America's manufacturers," warned U.S. Rep. Levin. 

"For decades now, South Korea's import substitution policies have kept American car manufacturers out of the market, resulting in a $10.2 billion trade deficit in bilateral automotive trade.  The test of the Bush Administration will be the results, which will be an agreement that eliminates all barriers to the South Korean market and grants real access for American cars and trucks.

"Unless the Bush Administration gets tough on eliminating South Korea's NTBs, this agreement will be a non-starter when it comes to reducing our tariffs. History has shown as the U.S. spends years negotiating away one set of barriers, South Korea simply replaces that NTB with another. South Korea needs to implement a plan for specific, measurable benchmarks to ensure increased and sustained access to South Korea's automotive market before there is any discussion of reducing our automotive tariffs.   The message is business as usual just won't cut it this time." 

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