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

Information Technology Industry Council 42
In written testimony, the Information Technology Industry Council (ITI) stated that it is an
association that represents the leading providers of information technology and services. ITI
said that its 41 member companies account for a combined $580 billion in annual U.S.
revenue and have an estimated 1.7 million people. ITI said that it supports the overall
agreement, and in hearing testimony, Mr. Rhett Dawson, president of ITI, said that the FTA
is an important agreement for the technology industry. ITI identified the following sections
of the FTA as especially beneficial to the U.S. high-technology industry: market access,
services, e-commerce, IPR, competition-related matters, government procurement, TBTs,
and customs matters and trade facilitation. ITI noted that the U.S.-Korea FTA sets a strong
precedent for future FTAs and strengthens U.S. global competitiveness and creates a fair,
level playing field for U.S. exporters.
ITI provided specific comments on the chapters of the FTA that it identified as especially
beneficial to their members. ITI remarked that the tariff reductions in the market-access
provisions will improve U.S. competitiveness in Korea for many products not covered by
the WTO’s Information Technology Agreement. For the services sector, it supports the
FTA’s use of the “negative list” approach, which it said would allow the greatest access
possible to Korea’s services market. With regard to e-commerce, the FTA assures
nondiscriminatory treatment of digital products. For IPR, the IPR chapter of the US-Korea
FTA is one of the strongest IPR agreements to be achieved in an FTA, and said that U.S.
industry is very supportive of this section of the FTA.” ITI stated that the “FTA creates
strong IPR enforcement mechanisms and penalty provisions.” The competition chapter is
stronger and goes beyond requirements in previous agreements, and will push Korea toward
greater transparency and fairness to U.S. industry and provide a strong precedent for future
FTAs. It supports the government provisions of the FTA and said that the FTA greatly
expands the benefits covered by the WTO’s Government Procurement Agreement (GPA) by
lowering the threshold for nondiscriminatory access by nearly 50 percent from the GPA. By
creating a working group on government procurement to address related issues, the FTA will
set a strong precedent for future FTAs, and said this element should be added to future FTAs.
With regard to TBTs, the FTA improves conditions and increased transparency in the
regulatory process, the development of technical standards, and the conformity assessment
process. Finally, with respect to customs matters and trade facilitation, ITI remarked that the
chapter meets the needs of its members and is consistent with previous FTAs.
International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America (UAW) 43
In testimony before the Commission, Douglas Meyer of the International Union, United
Automobile, Aerospace and Agricultural Implement Workers of America (UAW) said that
the UAW represents over 1 million active and retired workers, many of whom are employed
or receive retirement benefits from auto manufacturers and auto-parts companies in the
United States. He stated that the UAW does not support the U.S.-Korea FTA. Korea is the
42 Rhett Dawson, president, Information Technology Industry Council, testimony before the U.S.
International Trade Commission, June 20, 2007; and written submission, June 20, 2007.
43 Douglas Meyer, deputy director, International and Government Affairs, International Union, United
Automobile, Aerospace and Agricultural Implement Workers of America, testimony before the U.S.
International Trade Commission, June 20, 2007.
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