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

access to the market. The Council also cited industries such as pharmaceuticals, medical
equipment, and telecommunications and information technology that it views as likely to
benefit from specific FTA provisions.
U.S.-Korea FTA Business Coalition 59
In a written submission to the Commission, the U.S.-Korea FTA Business Coalition
(Coalition) stated that it is a broad-based group of over 400 U.S. companies, trade
associations, and business organizations. The Coalition strongly supports the U.S.-Korea
Free Trade Agreement (FTA) and believes that this FTA is the “most commercially
significant U.S. trade agreement in over a decade.” The Coalition noted that the FTA will
provide economic benefits by creating substantial new opportunities for U.S. businesses and
farmers with the elimination of high tariffs and nontariff market-access barriers in Korea. It
added that geopolitical benefits will result from providing the United States with the
opportunity to promote U.S. interests beyond bilateral trade with Korea.
The Coalition cited a number of FTA provisions that it views as positive. The Coalition
stated that the FTA will increase trade and investment flows between the United States and
Korea through the elimination of tariffs on manufactured goods and agriculture and provide
new opportunities in virtually all sectors and stronger protections in Korea. Cross-border
trade in services will increase with provisions such as allowing 100 percent foreign
ownership of telecommunications in Korea. The Coalition added that the FTA’s investment,
intellectual property, competition policy, and transparency provisions are strong. It added
that the FTA will promote Korea as a destination for U.S., investors, reduce intellectual
property damage to both U.S. and Korean firms, and streamline customs procedures that
would facilitate trade between the United States and Korea.
The Coalition stated that Korea is an important market for the U.S. financial services, and
for U.S. services sectors. It noted that Korea is the second-largest services market for the
United States in Asia. The Coalition described the financial services chapter as “one of the
strongest ever” in a U.S. FTA, and said that it would likely expect to generate significant
new business and benefits for U.S. firms by establishing a more competitive market
environment. Overall, the FTA is a “gold standard” agreement.
United States Council for International Business 60
In written testimony, the U.S. Council for International Business (USCIB) stated that its
members include 300 multinational companies, law firms, chambers of commerce, and
business associations, and that it promotes an open system of world commerce in which
business can flourish and contribute to economic growth, human welfare, and protection of
the environment. USCIB strongly supports the agreement, although it expressed reservations
regarding several of the agreement’s provisions. USCIB stated that the investment provisions
of the agreement will assist U.S.-owned firms operating in Korea to achieve their full
commercial potential. The USCIB noted that Korea is a party to bilateral investment
agreements with 80 foreign countries, but had not concluded such an agreement with the
U.S. prior to the FTA.
59 U.S.-Korea FTA Business Coalition, posthearing submission, June 27, 2007.
60 U.S. Council of International Business, written submission, June 25, 2007.
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