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

deterring illegal transshipments. It expressed concern, however, over whether Customs’
management has the willingness and determination to properly enforce textile agreements.
NCTO noted that, while the U.S. government did not allow goods from the industrial zones
in Kaesong, North Korea to gain U.S. market access under the FTA, the agreement would
allow for consultations with Korea on future access. NCTO noted that textile production is
a major component of these industrial zones, where, according to Korean projections, more
than 300,000 people will work within 5 years of FTA passage. NCTO remarked that, even
if these zones were never granted FTA status, the likelihood exists of significant
transshipments from the zones to the United States.
National Electrical Manufacturers Association 48
Tthe National Electrical Manufacturers Association (NEMA) stated in a written submission
to the Commission that it represents 430 companies that manufacture products used in
generation, transmission, distribution, control, and use of electricity. NEMA stated that it
supports the U.S.-Korea FTA and asks for legislators to ratify it as soon as possible. NEMA
reported that Korea is one of the U.S. electrical equipment industry’s top ten export markets
and that the United States currently runs a trade surplus with Korea in electrical equipment
despite current Korean tariffs in the 5–8 percent range. Despite concerns regarding nontariff
barriers and intellectual property protection in Korea, they believe that the overall FTA
would improve access to the Korea market, particularly the elimination (mostly immediate)
of tariffs on products covered by their association’s scope. NEMA estimates that over
$30 million of imports of U.S. products in Korea within their scope would be eliminated
upon implementation of the Agreement.
The National Pork Producers Council 49
In written and hearing testimony, the National Pork Producers Council (NPPC) stated that
it is a national association representing 44 affiliated state members that conducts public
policy outreach to enhance opportunities for U.S. pork producers and other industry
stakeholders. The NPPC reported that it works to pass and implement laws and regulations
that are conducive to the production and sale of pork in both domestic and international
markets, as well as to establish the U.S. pork industry as a consistent and responsible
supplier of high-quality pork to the domestic and world market.
The NPPC stated that it strongly supports the U.S.-Korea FTA. The NPPC noted that most
tariffs on frozen pork are to be phased out by 2014, while those for chilled pork will be
phased out in 10 years with a quantity-based safeguard that is acceptable. It added that the
FTA is expected to add nearly $825 million dollars in additional pork exports and represents
the most economically important FTA for the U.S. pork industry since NAFTA. It expects
the FTA, when fully implemented, will cause live U.S. hog prices to be $10 higher than
would otherwise have been the case and that Korea will absorb 5 percent of total U.S. pork
production. The NPPC commented that Korea also provides an important market for many
48 National Electrical Manufacturers Association, written submission, June 18, 2007.
49 Brian Buhr, economist, University of Minnesota, on behalf of the National Pork Producers Council,
testimony before the U.S. International Trade Commission, June 20, 2007; written submission,
June 20, 2007; and posthearing submission, June 27, 2007.
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