U.S. Chamber Testifies on Korea FTA's Boon to U.S. Automakers

Delaying Agreement is Not a Solution to Addressing Trade Imbalance

WASHINGTON, D.C.–-In testimony to the Senate today, the U.S. Chamber of Commerce's Vice President of Asia and President of the U.S.-Korea Business Council Myron Brilliant highlighted how the current automobile trade imbalance between the United States and Korea can be leveled by Congress passing the pending U.S.-Korea Free Trade Agreement (KORUS).

"This agreement is the best solution to eliminate barriers in the Korean market to U.S. autos and thus reduce the auto trade imbalance," said Brilliant in testimony to the Senate Commerce Committee. "It includes strong commitments by the Korean government to address virtually every tariff and non-tariff market access barrier to U.S. automobiles in Korea raised by the U.S. auto industry during the FTA negotiations."

Brilliant points out that the U.S.-International Trade Commission (USITC) forecasted that U.S. exports of passenger vehicles and parts to Korea would likely experience a large increase – between $294 million to $381 million annually – following full implementation of the FTA's provisions.

"Korea is no longer the closed market it once was to U.S. and other foreign automobiles," he said. "U.S. and other foreign import penetration of the Korean auto market has grown exponentially in recent years.

"Delaying or rejecting the agreement on the basis that it does not go far enough in opening Korea's market to U.S. autos is not a solution for addressing the imbalance in the U.S.-Korea auto trade," Brilliant said. "Rather, it places the U.S. auto industry at risk of further market imbalances and erosion of its market share in Korea."

The complete testimony is available at:

http://www.uschamber.com/issues/testimony/2008/080924_uskorea_auto.htm

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com

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