GWCSG Returns to Japan for Holidays - USS George Washington ...
GWCSG Returns to Japan for Holidays - USS George Washington ...
GWCSG Returns to Japan for Holidays - USS George Washington ...
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December 12, 2010 Page 10<br />
US, South Korea Free Trade Deal a ‘Win-Win’<br />
BBC<br />
Both the US and South Korea have hailed their<br />
long-awaited free trade agreement negotiated<br />
this weekend as a “win-win” deal.<br />
However, the final pact, which was originally<br />
signed in 2007 but never ratified, has<br />
been heavily criticised by South Korean opposition<br />
parties. They branded the compromises<br />
made by Seoul “humiliating and treacherous”.<br />
The deal needs parliamentary approval in both<br />
countries be<strong>for</strong>e it can be finally ratified.<br />
President Barack Obama said on Saturday<br />
the agreement “includes several important<br />
improvements and achieves what I believe<br />
trade deals must do. It’s a win-win <strong>for</strong> both<br />
our countries”.<br />
South Korean Trade Minister Kim Jong-<br />
Hoon also described the deal as a “win-win”.<br />
Negotiations on the free trade deal broke down<br />
in the run-up <strong>to</strong> last month’s G20 meeting of<br />
leading economies in Seoul.<br />
Car tariffs<br />
A key sticking point <strong>to</strong> the 2007 deal<br />
were tariffs imposed by South Korea on US<br />
car imports.<br />
“We have been hit by the North with<br />
cannons and now we we’re being hit by the<br />
US with the economy”<br />
But a compromise was agreed - the US<br />
By Heidi Przybyla and Mike Dorning<br />
Bloomberg<br />
President Obama said the deal was “essential” in boosting<br />
US exports.<br />
will lift its 2.5% tariff on South Korean cars<br />
after four years, while South Korea will halve<br />
its 8% tariff with immediate effect, be<strong>for</strong>e lifting<br />
it in four years.<br />
South Korea also agreed <strong>to</strong> allow the US<br />
<strong>to</strong> export up <strong>to</strong> 25,000 cars a year that do not<br />
meet its more stringent safety requirements. In<br />
return, the US agreed that South Korea could<br />
extend its tariffs on US pork imports <strong>for</strong> another<br />
two years.<br />
The deal does not address US concerns<br />
about tariffs on its beef exports.<br />
‘Cheated’<br />
The deal has proved deeply unpopular<br />
among opposition politicians in South Korea.<br />
“We have been hit by the North with<br />
Lawmakers may embrace plans by President<br />
Barack Obama’s debt commission <strong>to</strong> curb the<br />
costs of Social Security and $1 trillion in tax<br />
breaks even as comprehensive deficit reduction<br />
hinges on whether both parties seek confrontation<br />
or accommodation.<br />
While the commission lacked the votes<br />
<strong>to</strong> send its proposal <strong>to</strong> Congress, bipartisan<br />
agreement on the panel will open a debate<br />
over the retirement system and the tax breaks,<br />
which include the home-mortgage deduction,<br />
several lawmakers and analysts said.<br />
Any significant ef<strong>for</strong>t confronts what<br />
commission co- chairman Erskine Bowles<br />
called “the threat pressed upon us by these<br />
ever-increasing deficits.” Senate Budget Committee<br />
Chairman Kent Conrad, a Democrat,<br />
wants Obama <strong>to</strong> convene a summit, and House<br />
Republicans Dave Camp, incoming Ways and<br />
Means Committee chairman, and Paul Ryan,<br />
who will head the Budget Committee in January,<br />
say they’ll use the plan as a basis <strong>for</strong> hearings<br />
on the deficit.<br />
“I put the likelihood at 15 percent that<br />
we would have any kind of deficit-reduction<br />
package in the next two years,” said Diane<br />
Swonk, chief economist <strong>for</strong> Mesirow Financial<br />
Inc. in Chicago. “That’s not that high. But<br />
it’s higher than I would have put it two weeks<br />
ago.”<br />
Obama thanked the panel <strong>for</strong> highlighting<br />
“the magnitude of the challenge facing us”<br />
without embracing specific proposals. White<br />
House Budget Direc<strong>to</strong>r Jack Lew has invited<br />
commission members <strong>to</strong> meet.<br />
“I would prefer <strong>to</strong> even go further in<br />
deficit reduction than this package,” Conrad, a<br />
commission member, said yesterday on “Fox<br />
News Sunday.” He called the proposal, backed<br />
by 11 of the panel’s 18 members, “a strong beginning,”<br />
with the “next logical step” a meeting<br />
between Obama and bipartisan Congress<br />
leaders.<br />
Pressures <strong>to</strong> extend Bush-era tax cuts<br />
and respond <strong>to</strong> 9.8 percent unemployment will<br />
hamper fiscal restraint <strong>for</strong> now, said Lou Crandall,<br />
chief economist at Wrightson ICAP LLC,<br />
cannons and now we we’re being hit by the<br />
US with the economy,” said Park Jie-Won of<br />
the Democratic Party, referring <strong>to</strong> North Korea’s<br />
recent shelling of a border island.<br />
The Liberty Forward Party said the public<br />
had been “cheated by the deal”.<br />
“The concession garnered in the lives<strong>to</strong>ck<br />
products was not significant, so it was<br />
a deal that failed <strong>to</strong> meet national interests,”<br />
said the party’s Kwon Sun-Taik.<br />
Boosting exports<br />
President Obama hailed the deal on Saturday<br />
as “essential” <strong>for</strong> boosting US exports.<br />
“The agreement will contribute significantly<br />
<strong>to</strong> achieving my goal of doubling US<br />
exports over the next five years. “In fact, it’s<br />
estimated that <strong>to</strong>day’s deal will increase American<br />
economic output by more than our last<br />
nine trade agreements combined,” he said.<br />
Domestic consumption currently accounts<br />
<strong>for</strong> more than two-thirds of the US<br />
economy, and Mr Obama is keen <strong>to</strong> re-balance<br />
the economy by increasing exports. This is<br />
also a key strategy in securing a sustainable<br />
recovery from the downturn.<br />
The US recovery remains fragile, with<br />
disappointing unemployment figures released<br />
on Friday contributing <strong>to</strong> concerns that the<br />
world’s largest economy is struggling <strong>to</strong> shake<br />
off the recession.<br />
Lawmakers Accept Cuts <strong>to</strong> Social Security, Tax Breaks as Debt Plan Fails<br />
a unit of London-based ICAP Plc, the world’s<br />
largest broker of trades between banks.<br />
“It is difficult <strong>for</strong> the congressional<br />
leadership <strong>to</strong> drive two conflicting processes<br />
at once,” Crandall said. “Congress is probably<br />
going <strong>to</strong> have <strong>to</strong> take things one step at<br />
a time.”<br />
The federal budget deficit <strong>for</strong> the fiscal<br />
year ended Sept. 30 was $1.3 trillion or 8.9<br />
percent of gross domestic product, according<br />
<strong>to</strong> a calculation released by the Treasury<br />
Department in Oc<strong>to</strong>ber. Voters consider the<br />
shortfall their second most pressing concern,<br />
according <strong>to</strong> a Bloomberg National Poll.<br />
The plan by Bowles, a <strong>for</strong>mer chief of<br />
staff <strong>to</strong> President Bill Clin<strong>to</strong>n, and Republican<br />
co-chairman Alan Simpson, a <strong>for</strong>mer sena<strong>to</strong>r<br />
from Wyoming, would increase taxes by $1<br />
trillion by 2020. It would scale back or eliminate<br />
hundreds of tax deductions, exclusions or<br />
credits such as those allowing homeowners <strong>to</strong><br />
write off interest on their mortgage payments.<br />
It would also cut individual and corporate income<br />
tax rates.