Press Release

Statement from Commerce Secretary Praising Conclusion of U.S.-Korea Free Trade Agreement Negotiations

MOSCOW—U.S. Commerce Secretary Carlos M. Gutierrez today praised the successful conclusion of a U.S.-Korea Free Trade Agreement (FTA) in Seoul after 10 months of intense negotiations.

"I would like to congratulate Ambassador Susan Schwab and the entire U.S. negotiating team for achieving this historic free trade agreement with one of our most important trading partners. The U.S.-Korea FTA will help level the playing field for U.S. farmers, ranchers, businesses and service providers, while strengthening the bonds of friendship in a strategically important part of the world.

"The U.S.-Korea FTA presents a unique opportunity for U.S. manufacturers and service providers to expand their businesses and fulfill demand for high-quality U.S. products and services in one of the most dynamic economies of Asia. Nearly 95 percent of bilateral trade in consumer and industrial products will become duty-free within three years of entry into force of the Agreement.

"For American farmers, over $1 billion of U.S. farm exports to Korea will become duty-free immediately. This FTA represents the United States’ most commercially significant FTA in over a decade. The FTA will also further strengthen the close strategic relationship that the United States has enjoyed with South Korea for more than 50 years, bringing our two countries closer together in our shared vision of a peaceful and economically vibrant Asia-Pacific region.

"The U.S.-Korea FTA is another step towards fulfilling President Bush’s trade agenda to promote U.S. exports.

"I look forward to working with Congress to ensure that this historic agreement can go to work for the American people in the near future."

Background
On February 2, 2006, the United States launched free trade agreement negotiations with Korea, and the first of eight formal negotiating rounds took place in June 2006.

The Republic of Korea has a GDP of nearly $1 trillion and is already the 7th-largest export market for U.S. products and services. Korea is the United States’ seventh largest trading partner in terms of imports and exports, with bilateral trade topping $75 billion in 2006. The United States is Korea’s 6th-largest trading partner, and Korea is uniquely positioned geographically between Japan and China to be a springboard for U.S. economic interests in Northeast Asia.