The United States and South Korea yesterday announced the launch of free trade agreement (FTA) negotiations between the two countries. In making the announcement, U.S. Trade Representative Rob Portman stated that he hoped to conclude negotiations this year, in time to submit a completed agreement for Congressional consideration under present “trade promotion authority” (TPA) rules. Since TPA is set to expire in June 2007, any delay in that timetable could jeopardize prospects for approval of an agreement since renewal of TPA is widely expected to be a protracted and contentious battle.
Korea is the world’s eleventh-largest market, and the United States’ seventh-largest trading partner. As such, an FTA with Korea would constitute the largest bilateral trade agreement to which the U.S. has been a party since implementation of the North American Free Trade Agreement twelve years ago.
As the negotiations commence, U.S. demands are expected to focus on Korea’s automotive and agricultural sectors, both of which present burdensome obstacles for U.S. exporters.
The USTR is expected to officially notify Congress of its intent to launch FTA negotiations with Korea today, which would trigger a 90-days consultative period. AFI Members that source product from Korea, or that otherwise have concerns or interests regarding a potential FTA with Korea are asked to notify Bob Bauer and Jeff Levin so that AFI has the opportunity to enter the negotiating arena in the early-going.
