Korea-U.S. FTA

What Did Bush Say About Trade this Week?

President Bush called on Congress to pass the Korean trade agreement in his State of the Union speech Monday night (along with the Columbian and Panamanian agreements).  The key trade paragraphs are printed at the end of this post.  He argued that the agreements would open new overseas markets, leveling the trading field by getting foreign countries to lower their barriers to our levels.  He argued that the agreements would support U.S. strategic interests.  He also endorsed reform and reauthorization of trade adjustment assistance. 

Bush followed up and elaborated his arguments in a speech on trade to employees of the Robinson Helicopter Company in Torrance California on Wednesday: President Bush Discusses Trade and Economy .  This should have been a receptive audience.  Robinson earns significant revenues from overseas sales.  Bush argued (my summary, not necessarily his words):

Baucus's New Condition for FTA approval

Max Baucus, the Chairman of the Senate Finance Committee, said that he would not take up any of the three bilateral trade agreements (with Columbia, Panana, and South Korea) without action on expanded and reauthorized Trade Adjustment Assistance.  The Chairman of the Senate Finance Committee is in a position to make a very credible threat.

In the past Baucus has also made it clear that a satisfactory Korean action on the beef import issue is also a pre-condition for letting the South Korean trade agreement move forward.

Baucus was speaking to a gathering at the Peterson Institute in Washington; here's the transcript of his remarks: Remarks Before the Peterson Institute Regarding Trade Adjustment Assistance (January 30, 2008):

The Korean Navy's Indian Ocean Aspirations

Trading countries like to protect their trade routes (China's growing navy, July 16, 2007; India wants to protect its sea lanes too, July 17, 2007).

South Korea is no exception.  Mingi Hyun over at the 'Manoeuvre' in Maritime Asia weblog has posted on the Korean response in a U.S. invitation to help protect joint U.S. and Korean interests in the Indian Ocean: USN-ROKN to Pursue Joint Operations in Indian Ocean (January 27, 2008):

New Report on KORUS FTA

The Congressional Research Service (CRS) has released a report on the Korea-U.S. trade agreement: The Proposed U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implications (January 22, 2008). 

This report, by five CRS analysts, provides a general overview of the agreement, explanations of the implications for key industries, discussions of cross-cutting provisions (not closely tied to specific industries, for example trade remedies and labor rights), and informed speculation about the upcoming debate and congressional process.  A very readable report of about 50 pages, here's the executive summary:

Party Problems

Both of the leading parties in Korea's National Assembly are entering the current month-long session in a certain amount of disarray.

Shin Hae-in reports that in the Grand National Party (GNP), the more conservative, business-oriented party of President-elect Lee Myung-bak, that ethics rules have become the center of a factional power struggle: GNP splits over removal of corrupt lawmakers (Yonhap News, January 28):

The Ratification Calendar in the U.S.

Troy Stangarone, the Director of Congressional Affairs and Trade for the Korea Economic Institute, looks at the timing if the U.S. is to ratify the trade agreement in 2008 in the January issue of the Institute's Korea Insights: As Iowa and New Hampshire Beckon, KORUS FTA has its own road to travel in 2008 .

Hawaiians Plan Ahead for Korean Visa Waivers

Short term visitors to the U.S. from a number of countries can get visa requirements waived.  But not Korea.  That may change soon - not as a direct result of the trade agreement - but as a result of legislation passed last summer. 

This should be good for Hawaii (The Next Waive. Potential Visa Waiver Could Increase Korean Visitors Five-Fold , Cathy Cruz-George, Hawaii Business).

Korean motives: locking in reforms

In a recent interview with the Los Angeles Times editorial board, U.S. Trade Representative Susan Schwab explained that under the trade agreement, the Korean government was enacting domestic reforms in exchange for preferential access to the largest market in the world.  The reciprocity, she argued, makes it politically easier for the government to implement necessary reforms (Free trade unbound, January 16):

The American Jewish Committee Supports the KORUS FTA

The Amercian Jewish Committee has come out in favor of the trade agreement with Korea: AJC President Sideman Meets Senior South Korean Officials in Seoul (press release, January 16, 2008).  The text of the press release is below.  The reasons for the support implicit in the release are political and strategic rather than economic.

Korea's National Assembly Meets

Korea's National Assembly opened its month-long Jan-Feb 2008 session on January 28 (Monday in Korea, Sunday in the U.S.).  Many believe that if the Assembly doesn't ratify the trade agreement with the U.S. in this session, the odds of eventual ratification will drop significantly (The Chosun Ilbo Looks at Ratification Timing, Korea-U.S. FTA, January 10, 2008).