Peoria Journal Star, USA
South Korean ambassador touts free trade pact
In visit to Peoria, South Korean envoy says free trade deal on table with Korea would mean more U.S. jobs
By Steve Tarter, Journal Star
16 August 2010
South Korea's ambassador to the United States said ratification of a free trade agreement between this country and his would benefit both countries, including an increase in U.S. jobs.
In a meeting Monday with the Journal Star editorial board, Ambassador Han Duk-soo said he was in Peoria to promote the advantages of a trade agreement that awaits implementation by the U.S. government.
Han spoke at the Hotel Pere Marquette in a program organized by the Peoria Area Chamber of Commerce, U.S. Chamber of Commerce and Caterpillar Inc.
If the pact is approved, "95 percent of all Korean tariffs (on U.S. goods) would be eliminated within three years," said Han, indicating that U.S. businesses would enjoy greater access to South Korea, now the 15th largest economy in the world. That increase in trade could mean the creation of thousands of U.S. jobs, he said.
One of those businesses that would benefit from the agreement would be Caterpillar, said Bill Lane, director of the company's Washington, D.C., office.
"Caterpillar, historically, does even better when markets are truly open.
"Korea was basically a closed market 15 years ago. Now it's one of the world's most open markets. For Caterpillar, this is all opportunity," said Lane, acknowledging that Korea presently represents a small Asian market for the company.
"What's going on in Asia is fundamentally different than anything we've seen in the past when protectionism was practiced. Today, Asia embraces trade liberalization. It's an exciting, dynamic market that's beating the United States at its own game - in attracting capital," he said.
"Now Korea is the most open market in Asia. They just completed a (trade agreement) with the Europeans. America needs its own trade agreement to remain competitive."
Han said that proposed tariff reductions by both countries under the agreement "would level the playing field." At present, Korean tariffs on many goods are about 8 percent while U.S. tariffs on Korean merchandise are 3 to 4 percent, said the ambassador.
Han's visit here was one of 50 stops he's making across the country to build support for the U.S.-Korea trade agreement, approved by Congress in 2007 but held up because of concerns raised by the American auto industry.
Han said that South Korea was willing to discuss what else could be done to alleviate those concerns. "The supply structure between the two countries is quite different. While 70 percent of the U.S. market is big cars and 30 percent small cars; in Korea it's 80 percent small cars and 20 percent large," he said.
Tami Overby, an official with the U.S. Chamber of Commerce who also spoke at Monday's program in Downtown Peoria, said free trade agreements "are flying fast and furious in Asia. These things are happening and (the United States) is on the outside."
"Signing the agreement would also benefit the small and medium-sized businesses in Illinois," said Overby, vice president of the chamber's Asia department.
Han said problems with North Korea were being contained by the involvement of other countries around the world, including the United States and China. "North Korea is going through a difficult economic situation," said Han, noting that peaceful reunification between North and South Korea is still a goal.
