Manufacturers: Korea Trade Agreement Is Significant Step Forward for Jobs and Competitiveness

Washington, DC, 12/04/10 -  The National Association of Manufacturers (NAM) President John Engler issued the following statement on today’s announced deal on the U.S.-Korea Free Trade Agreement (KORUS FTA):

“Manufacturers congratulate President Obama and U.S. Trade Representative Ron Kirk for their tireless efforts to reach this agreement, which is critical for manufacturers in America and means jobs, jobs and jobs.  It was important to manufacturers to improve the auto provision, and we are pleased to see it has been addressed. We are anxious to work with the Administration to get this agreement to Congress for action.

This agreement will provide a broad scope of opportunities and generate billions of dollars annually in new U.S. exports to Korea. Nearly 60 percent of exports expected to go to Korea will be manufactured goods from a wide range of industrial sectors in every state in America.

It is important to point out that this trade agreement will eliminate tariffs on 95 percent of consumer and industrial products between the two countries within three years. This is one of the largest bilateral trade deals the U.S. has ever undertaken.  Korea represents a manufactured goods import market of $250 billion. Without this agreement, U.S. exporters only have 11 percent of the market – and face a higher cost of doing business. 

Trade agreements are critical to manufacturers’ competitiveness and our country’s economic growth. While the U.S. sits on the sidelines, countries around the globe are moving quickly to put trade agreements in place to give their companies advantages in markets abroad. The European Union, Japan and other competitors are in a race to negotiate free trade agreements with Korea and various nations throughout the world, which could put U.S. manufacturing companies at a significant disadvantage. 

Data continue to show that the U.S. benefits greatly from free trade agreements – for the past three years, we have had a trade surplus with our free trade agreement partners. The KORUS agreement paves the way for the passage of additional agreements, particularly the Colombia and Panama agreements, and moving quickly on the Trans Pacific Partnership. 

This agreement also shows the U.S. commitment to intensify its strategic role in Asia and increase its engagement in that important part of the world. We look forward to working with the Administration and Congress to get this important trade agreement approved.”