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

PhRMA identified what it views as the key provisions of the FTA relating to
pharmaceuticals: (1) agreement on a general set of principles related to patients’ access to
pharmaceutical products, economic incentives and competitive markets for drugs,
government support for research and development and intellectual property rights, and
transparency in governmental procedures; (2) agreement upon principles for the pricing and
reimbursement of innovative medicines; (3) extensive transparency provisions that should
help eliminate problems that U.S. companies are currently facing in the pricing and
reimbursement for their products; (4) the right of manufacturers to disseminate information
about drugs over the Internet; (5) an article on ethical business practice that would ensure
that both countries have appropriate measures in place to prohibit improper inducements by
pharmaceutical manufacturers to health-care professionals and institutions; (6) creation of
a Medicines and Medical Devices Committee that would support the implementation of the
provisions of the Pharmaceutical Products and Medical Devices chapter; and (7) provisions
to ensure adequate protection of intellectual property through a patent linkage system, data
exclusivity, and compensation for delays in the patent and marketing application processes.
According to PhRMA, the FTA will be beneficial to the biopharmaceutical industry and the
U.S. economy as a whole. It said that it supports the full and timely implementation of the
agreement by Korea so that the benefits that are expected from the agreement can be fully
realized.
Rubber and Plastic Footwear Manufacturers Association 52
In a written submission to the Commission, the Rubber and Plastic Footwear Manufacturers
Association (RPFMA), stated that it is a trade association representing the principal domestic
producers of protective footwear and rubber-sole, fabric-upper footwear. It reported that its
members do most of their manufacturing in the United States, but many of them do a
significant amount of importing. RPFMA stated that it is “satisfied” with the phaseout of
U.S. tariffs under the FTA on the core products of these domestic producers. RPFMA noted
that, under the FTA, U.S. tariffs on its core products would receive a nonlinear phaseout over
12 years; that is, the tariffs would remain unchanged during years one through eight,
followed by a succession of 25 percent duty cuts in each of the following 4 years, becoming
free at the beginning of year 12. It noted that Korean wage rates are significantly higher than
those of other Far Eastern rubber footwear competitors and said that the domestic industry
is satisfied that the extended and nonlinear phaseout of U.S. tariffs will not pose a threat to
the continued operation of domestic production of the specified rubber footwear.
Semiconductor Industry Association 53
In a written submission to the Commission, the Semiconductor Industry Association (SIA)
stated that it has been a leading voice of the U.S. semiconductor industry for 30 years. The
SIA said that it supports Congressional approval of the U.S.-Korea Free Trade Agreement.
The SIA stated that it “favors free and open markets” and that “U.S. trade agreements have
served the U.S. industry, and, when multilateral, the world semiconductor industry.” The
52 Rubber and Plastic Footwear Manufacturers Association, written submission, May 17, 2007.
53 Market Research, International Affairs and Finance, Semiconductor Industry Association, written
submission, June 25, 2007.
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