New Pact Would Be Boon to U.S. Industry

Leaders from the United States and South Korea today signed a free trade agreement between the two countries, marking another step toward implementation of a deal that would expand market access for U.S. companies and help reduce the U.S. trade deficit, the Electronic Industries Alliance (EIA) and the Telecommunications Industry Association (TIA) said. Both Associations now urge Congress to give the FTA its full support at the soonest possible opportunity.

“Korea is one of our largest trading partners and that relationship will only become more significant in the future,” said Matt Flanigan, EIA’s interim president and CEO. “In 2006 only six countries purchased more American goods than Korea and one-third of those products were high-tech – $10.6 billion. We urge Congress to put our country on the right side of economic modernization and enact this agreement as soon as possible.

“This signing also underscores the need to renew the president’s trade promotion authority,” Flanigan added. “It’s the best thing Congress can do to help U.S. companies compete abroad. Failure to do so would hamstring U.S. employers and workers and hand our foreign competitors an enormous advantage.”

“The benefits of this agreement to both countries are abundantly clear,” said TIA president Grant Seiffert. “We urge Congress to give U.S. manufacturers its support by approving the FTA when submitted by President Bush.”

“This agreement lets the people of both nations continue to use and enjoy the latest in communications products,” said TIA president Grant Seiffert. “With the support of Congress we can now work to improve our standing as an exporter to the Korean IT and telecom market.”

Both Associations have long made FTAs a cornerstone of their international advocacy efforts.

Now that U.S. Trade Representative Susan Schwab and Korea’s Trade Minister Kim Hyun-Chung, have signed the pact, the U.S. International Trade Committee must complete a report on the free trade agreement within 90 days, clearing the way for the Bush Administration to submit it to Congress for a vote.