Van Hollen Statement on Re-negotiation of the FTA with South Korea

Statement

I congratulate President Obama and his team for their successful re-negotiation of the FTA with South Korea. The important changes to this agreement will benefit American consumers and workers and strengthen the U.S. economy by significantly contributing to the president's goal of doubling U.S. exports over the next five years.

It is estimated that this agreement could potentially increase American economic output by more than the last nine free trade agreements combined. The agreement will open Korea's services sector, which will support at least 70,000 American jobs; increase exports of American agricultural products, including beef products; increase our aerospace and electronics manufacturing exports; and provide American car manufacturers with greater access to the Korean auto market.

Prior to this agreement, American auto manufactures competed with Korean auto makers on an uneven playing field. South Korea's protectionist tax and tariff policies enabled it to export 476,000 autos to the U.S. in 2009, while limiting U.S. auto imports to less than 6,000 cars. This agreement is a significant improvement on the deal negotiated by the Bush Administration. That agreement would have eliminated American duties on Korean car exports immediately--potentially increasing South Korea's already outsized access to the American auto market. The re-negotiated agreement increases Korean access to the U.S. auto market gradually and provides leverage to assure that Korea follows through on its commitments. The re-negotiated agreement will also tear down the non-tariff barriers and improper tax rules that Korea has used for decades to shutout U.S. automakers. These changes have gained the support of American auto makers and the United Auto Workers.

The agreement is good for American consumers, companies and workers. It will translate into lower prices for American consumers and greater market access for American companies and workers. The agreement contains important protections for workers' rights and for the environment, and will help to strengthen the U.S. economy. This agreement also reflects the important economic and security relationship shared between our two countries.

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