By Jane Han
WASHINGTON — U.S. President Barack Obama on Saturday praised the updated version of the South Korea-U.S. free trade deal, labeling it a “win for American workers, for farmers and ranchers.”
“The agreement we’re announcing today includes several important improvements and achieves what I believe trade deals must do, it’s a win-win for both countries,” Obama told reporters at the White House, a day after trade representatives from Seoul and Washington broke through a three-year stalemate on automobile provisions.
The newly sealed pact, revised from the first one reached in 2007 during the administration of President George W. Bush, removes key auto-related obstacles cited by U.S. lawmakers and automakers.
The supplemental agreement mainly eases safety and environmental standards for American carmakers that aim to sell more in the Korean market largely dominated by domestic manufacturers.
The bilateral free trade agreement (FTA) still needs ratification from the legislatures of both countries to take effect, but prospects in the U.S. are brighter this time with both Democrats and Republicans showing approval over economic benefits.
“In short, the tariff reductions in this agreement alone are expected to boost annual exports of American goods by up to $11 billion,” he said, adding that the deal with Korea alone will increase the U.S. economic output by more than the last nine FTAs combined.
“All told, this agreement, including the opening of the Korean service market, will support at least 70,000 American jobs and contribute significantly to achieving my goal of doubling U.S. exports over the next five years,” said Obama, who directly linked the trade deal to U.S. job growth.
News of the Korea-U.S. FTA came on the same day the government reported the U.S. unemployment rate jumped to 9.8 percent in November.
“We have to do more to accelerate the economic recovery and create jobs for the millions of Americans who are still looking for work,” said Obama.
The U.S. president went on to highlight the economic benefits for Korea.
“This deal is also a win for our ally and friend South Korea. They will gain greater access to our markets and make American products more affordable for Korean households and businesses, resulting in more choices for Korean consumers,” he said.
The White House moved quickly to boost Obama’s effort to win congressional approval as it released a compilation of supportive statements from politicians, major companies and industry groups, including Ford Motor, GE, National Association of Manufacturers and Poultry and Egg Export Council.