U.S.-Korea Free Trade Agreement: Potential Economy-wide ... - USITC

Regarding footwear and travel goods, the FTA’s flexible and forward-looking provisions for
these goods should provide new opportunities to increase footwear and travel goods trade
between the United States and Korea. According to AAFA, the FTA rules of origin will not
only help stem the decline in footwear and travel goods trade between the United States and
Korea, but also provide a mechanism to rebuild this vital relationship.
American Council on Education 24
In a written submission to the Commission, the American Council on Education (ACE),
whose members and associates include about 1,800 accredited, degree-granting colleges and
universities and higher-education-related associations, organizations, and corporations, stated
that it is a coordinating body that seeks to influence public policy on higher education issues
through advocacy, research, and program initiatives. ACE expressed reservations about
including higher education services for coverage under chapter 12 (cross-border trade in
services) in the U.S.-Korea FTA; it also noted that it had expressed similar reservations to
the USTR in response to the most recent U.S. offer in the Doha Round of negotiations on
services under the WTO General Agreement on Trade in Services (GATS). According to
ACE, the U.S.-Korea FTA fails to adequately protect the diverse mix of public and private
institutions that has made the United States a global leader in education services. ACE
members are concerned that language in the U.S.-Korea FTA could subject public higher
education institutions to treatment different from private institutions because public
institutions may exercise delegated government authority. It would welcome further
explanation from the USTR as to how the distinction between delegating to one entity the
power to regulate other entities as compared to delegating to one entity the power to selfregulate
would ensure equal treatment of public and private higher education institutions.
Until such an explanation is provided, no further U.S. commitments should be made
concerning higher education services in either the U.S.-Korea FTA or the GATS.
American Council of Life Insurers 25
In written and hearing testimony, the American Council of Life Insurers (ACLI), which
represents 373 life insurers in the United States, stated that it strongly endorses the U.S.-
Korea Free Trade Agreement. The ACLI noted that the agreement would have certain
strategic advantages for U.S. insurance firms as the Korean insurance market is the eighthlargest
in the world, and the largest to be included in an FTA with the United States. The
agreement would strengthen the United States’ position as a global competitor in Asia, where
the volume of trade agreements is growing. The financial services provisions included in the
FTA set a new, higher standard for all future FTA negotiations.
ACLI also noted that the FTA would strengthen Korea’s economy and capital markets,
further its efforts toward reform and financial services liberalization, and ensure the adoption
of international best practices. In particular, the agreement contains several provisions that
will benefit U.S. insurance firms operating in the Korean market. These include regulatory
transparency reforms, competitive equity with Korea Post, lifting of data-processing
24 American Council on Education, written submission, June 26, 2007.
25 Brad Smith, vice president, American Council of Life Insurers, testimony before the U.S. International
Trade Commission, June 20, 2007; written submission, June 20, 2007; and posthearing submission,
June 27, 2007.
7-11