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

SIA also said that the U.S.-Korea Free Trade Agreement is important for the U.S.
semiconductor industry as a “precursor to further trade-liberalizing initiatives in Asia.”
The SIA provided specific comments on five provisions of the agreement: tariffs, trade
remedies, intellectual property, competition-related matters, and TBT. Regarding tariffs, the
SIA noted that the reason why the agreement does not contain further market access benefits
for the semiconductor industry is because these benefits have already been obtained. The
SIA added, however, that the agreement does not provide duty-free treatment for “MCPlike”
devices. Second, with regard to trade remedies, the agreement would make the use of
the antidumping law potentially more difficult, but that access to safeguards is currently not
likely a major concern for the semiconductor industry. Changes to trade-remedy rules and
processes should be made through the WTO. Third, it appreciates that the agreement
addresses comprehensively what it describes as Korea’s lack of effective enforcement
mechanisms regarding intellectual property. The SIA noted, however, that the meaning of
the term “inequitable conduct” used in the intellectual property chapter of the agreement
should be further clarified. Fourth, regarding competition-related matters in chapter 16 of the
agreement, many of the provisions will contribute to fairer treatment by the Korean Fair
Trade Commission of U.S. firms and that this chapter provides a solid precedent for other
Asian countries whose antitrust laws could be applied against foreign investors in a
discriminatory way. Finally, the TBT chapter of the agreement is a good model for achieving
similar protections through FTAs with other Asian nations with similar issues.
Society of the Plastics Industry 54
The Society of the Plastics Industry (SPI) stated in a written submission to the Commission
that it represents U.S. companies operating in all segments of the plastics supply chain,
including plastics processors and manufacturers of machinery, molds, and raw materials. The
SPI stated that it strongly supports the U.S.-Korea FTA.
The SPI added that its support of the FTA is based on its 5- to 10-year phaseouts of U.S.
tariffs on plastic products that it considers “highly sensitive” to competition from Korean
imports and the FTA’s reciprocal market access for molds, machinery, and raw materials.
The SPI noted that Korean tariffs for over 65 percent of plastic products would be eliminated
within 3 years of the implementation of the FTA, and within 5 years, Korean tariffs on over
99 percent of U.S. exports would be eliminated. Conversely, a vast majority of U.S. tariffs
on plastic products will be phased out over 10 years. The duty phaseouts for the raw
materials (polymers/resins), molding machinery, and molds provide reciprocal benefits for
both countries. As a result of the tariff eliminations, SPI says the FTA offers significant
opportunity for the plastics industry.
Telecommunications Industry Association 55
In a written submission to the Commission, the Telecommunications Industry Association
(TIA) stated that it is the leading trade association representing the information and
communications technology (ICT) industry, with approximately 600 member companies that
manufacture or supply the products and services used in global telecommunications. Overall,
54 Society of the Plastics Industry, written submission, June 21, 2007.
55 Telecommunications Industry Association, written submission, June 27, 2007.
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