US trade agency quotes KITA submission
Korea International Trade Association (KITA) Vice Chairman Kim Jung-kwan speaks during an information session on Brexit, Britain’s choice to leave the European Union, in Samseong-dong, southern Seoul, Friday. / Yonhap
By Nam Hyun-woo
The Korea International Trade Association (KITA) said Sunday its submissions were quoted and mentioned in a United States International Trade Commission’s (USITC) report, a rare case of the U.S. federal trade fact-finding agency quoting a foreign economic body.
On Friday, the USITC released the report titled “Economic Impact of Trade Agreements Implemented under Trade Authorities Procedures,” which analyzed the impact on the U.S. of all trade agreements passed under trade authorities’ procedures since January 1, 1984, including the Korea-U.S. free trade agreement (KORUS FTA) and the North American FTA (NAFTA).
In the report, the USITC assessed that “U.S. bilateral, regional, and multilateral agreements have evolved markedly over the last 30 years, with their provisions often becoming broader, stronger, and more transparent.”
The report estimated that in 2012, the agreements increased total U.S. exports by 3.6 percent, total imports by 2.3 percent, real GDP by 0.2 percent, total employment by 0.1 percent and real wages by 0.3 percent.
In mentioning so, the USITC quoted KITA’s written submission in February that “U.S. exports to Korea of intellectual property-intensive products and services, including software, films and television programming, have experienced significant growth.”
“Many products manufactured in Korea, such as flat panel displays from companies like Samsung and LG, incorporate intellectual property designed and developed in the U.S,” the report said quoting KITA’s submission.
In its submission, KITA said U.S. software imports to Korea increased by 40 percent after the KORUS FTA, standing at $2.35 billion in 2013.
Also, KITA stated that the KORUS FTA has reduced tariff barriers and regulations and created mutual business opportunities, as U.S. imports to Korea increased after the agreement was implemented.
“The USITC’s report will weaken the negative voice over free trade agreements, give the report has shown that the agreements have poised positive impacts on the U.S. economy,” a KITA official said. “KITA will spare no efforts to promote the positive impact of the KORUS FTA.”