Korea-U.S. FTA

Ron Kirk talks sense to the American people

Trade isn't part of the problem, its part of the solution, says U.S. Trade Representative Ron Kirk: Remarks by Ambassador Ron Kirk United States Trade Representative. (remarks at Georgetown today).

Exports accounted for 13 percent of GDP last year and almost half of overall U.S. trade growth in the three years leading up to the recession.  As exports have fallen 16 percent, unemployment has risen, so:

"An aggressive effort to keep trade flowing and open more markets to American goods and services absolutely must be a big part of our economic recovery here at home...."

"To get our economy back on track, we need to increase exports. That means we need access to growing economies abroad...."

"...a strong case can be made for trade as a creator not just of jobs, but of the better-paying jobs that Americans want and need today."

Here's how the administration plans to proceed:

Sherrod Brown wants to slow down

Ohio Democratic Senator Sherrod Brown wants to slow down any potential effort by the Obama Administration to push for Congressional ratification of the Columbia, Panama or Korea trade agreements: Lawmaker Moves to Delay Free-Trade Pacts.  Speaking to the Washington International Trade Association, Brown

said he would introduce legislation to put pending trade deals on hold until a federal commission and the Government Accountability Office studied the benefits of existing trade policies. He said his intent isn't to delay the pending deals but rather to ensure that decisions on trade are "evidence-based."

Asked whether his effort would ultimately prevent the current Congress from taking up the free-trade pacts, Mr. Brown said, "I don't know the answer to that," before adding, "What's the rush?"

"Prove to me these trade agreements are working," he said.

Here's Brown's prepared statement.

All of these agreements have been evaluated by the U.S. International Trade Commission:

• U.S.-Korea Free Trade Agreement: Potential Economy-wide and Selected Sectoral Effects [Abstract]
• U.S.-Panama Trade Promotion Agreement: Potential Economy-wide and Selected Sectoral Effects [Abstract]
• U.S.-Colombia Trade Promotion Agreement: Potential Economy-wide and Selected Sectoral Effects [Abstract]

A variety of advisory committee reports on each agreement can be found here: Trade Agreements Home

FTA through key National Assembly committee; final Assembly action in June?

The National Assembly's Foreign Affairs and Trade Committee has signed off on the U.S.-Korea FTA, paving the way for final action by the Assembly: S. Korean parliamentary committee approves FTA with US.

The story mentions the possibility of Assembly action before the current session ends in April, but it sounds more likely in June, perhaps following a Korea-U.S. summit.

Progress in the U.S.

Suddenly things seem to be happening in the U.S. 

A week ago, Assistant USTR Danny Sepulveda said the USTR's Office hoped the trade agreement with Korea could be approved by Congress without renegotiation: USTR aims to preserve Seoul trade pact.

On the 20th, Ron Kirk, the U.S. Trade Representative, announced plans to review the Columbian and Panamanian agreements with a view to submitting them to Congress: USTR's Kirk: Will Start Review Of Colombia FTA Immediately:

U.S. Trade Representative Ron Kirk announced plans Monday to immediately start reviewing the Colombia and Panama free trade agreements to resolve the outstanding issues before the deals can be submitted for a vote in Congress.

Kirk, speaking to reporters on a call to discuss the Summit of the Americas conference over the weekend...

...the administration has said it would like to address some shortcomings in the Colombia and Panama deals before sending them up to Congress for passage.

Kirk cited "remarkable progress" in reducing violence in Colombia, but said a number of issues still need to be resolved that he plans to discuss with Colombia and congressional leaders.

For Panama, the remaining issues revolve around international labor standards and of the country "possibly being a tax haven," he said.

Doug Palmer covers the same ground for Reuters: Kirk to consult with Congress on Colombia trade.

Also on the 20th, Senators Max Baucus and Charles Grassley (Chair and ranking minority member of the crucial Senate Finance Committee) pointed to the security benefits of the Korea trade agreement to the U.S.: Baucus and Grassley letter:

North Korea’s April 5 launch of a three‐stage Taepo‐dong 2 missile and recent statements that
it will resume its nuclear program demonstrate yet again the threat that North Korea poses in
the northeast Asian region. These are only the latest in a long history of provocative actions.

In the face of this threat, it is vital that the United States maintain and expand its strong and
proven partnership with the Republic of Korea....

As the United States and Korea seek to defuse security threats for the sake of our nations’
safety, so too must we work to resolve bilateral economic issues for the sake of our common
prosperity....

The greatest challenge and opportunity in our bilateral economic relationship is the pending
U.S.‐Korea Free Trade Agreement (FTA)....

On the other hand:

Clearly, there is further work to be done if Congress is to support the agreement. In particular,
Korea has yet to ensure U.S. beef exporters full access to its market in accordance with
international standards. Korea’s long history of non‐tariff barriers to its autos sector also raises
serious concerns with some regarding the agreement. Postponing addressing such issues will
not make them easier to resolve.

What's next for U.S. beef?

Korea reopened its market to U.S. beef last year and sales have been improving.  Imports were initially restricted to beef from animals less than 30 months old; imports of from animals over 30 months were to be allowed when public attitudes improved enough to make it possible.  When will Washington seek access for the older animals: Age issue next likely challenge for U.S. beef imports.  After the current Korea-Canada beef controversy is over?

A step forward in the National Assembly?

The Foreign Affairs and Trade Committee in Korea's National Assembly plans to vote Wednesday, April 22, on sending the trade agreement to the Assembly itself: Assembly Committee to Vote on KORUS FTA Motion Wednesday.  Opposition legislators won't be voting for it, but it doesn't sound like they'll be trying to disrupt voting this time either:

The main opposition Democratic Party (DP) will not participate in the vote as its members oppose ratification before the U.S. government makes clear its posture. The minor opposition Liberty Forward Party also opposes ratification.

Negotiators of the GNP and the DP reached an agreement on voting on the motion during inter-party talks in January after U.S. President Barack Obama's administration took office.