 AMCHAM Korea president Amy Jackson |
Staff reporter
Prospects are slim for the ratification of the Korea-U.S. free trade agreement (FTA) before the mid-term elections in the U.S. and the G-20 Summit in Korea in November, American Chamber of Commerce in Korea (AMCHAM) President Amy Jackson said.
``It's clear it would be very difficult for the Obama administration to put this agreement forward to Congress before the November mid-term elections. We hope as soon as the elections are over, the Obama administration would turn to trade and put the Korea-U.S. FTA first. We are doing everything we can to push that,'' Jackson told The Korea Times at the AMCHAM office in southern Seoul.
There are hopes that President Lee Myung-bak and U.S. President Barack Obama will work out the differences on both sides, during their up-coming meetings in Canada next week and in Korea in November.
``We hope they have a very positive meeting and work out the details of the ratification of the agreement on both sides. It is definitely a challenge. There's no chance this agreement will not pass Congress. It's just a matter of time,'' Jackson added.
It has been almost three years since the agreement, which will eliminate most tariffs and other barriers to trade in goods and services, was signed by the two countries on June 30, 2007. The ratification of the FTA both in the U.S. Congress and Korea's National Assembly has been held up due to some sticky points regarding the imbalance in auto trade and restricted beef shipments to Korea.
Jackson, a former deputy assistant U.S. trade representative for Korea, cited the urgency to ratify the Korea-U.S. FTA ahead of the EU-Korea FTA.
``If the Korea-EU FTA goes forward first, on the one hand we are concerned about the market share of American companies, but on the flip side, it will pressure the U.S. to do something,'' she said.
Jackson lamented how the U.S. government has been dragging its feet on the FTA when it will have positive economic effects on both countries. Based on U.S. government statistics, the implementation of the FTA would add between $10 billion and $12 billion to the annual U.S. gross domestic product, plus around $10 billion in annual merchandise exports to Korea and create more than 200,000 jobs.
``At a time when the U.S. has been reevaluating its trade policy, the contrast between the two countries is huge. Korea understands the benefits of trade and is aggressively moving forward. We have the U.S. with a 10 percent unemployment rate, looking for ways to increase exports but still considering what to do with its trade policy,'' she said.
Within three years of the FTA implementation, nearly 95 percent of bilateral trade in consumer and industrial products, such as industrial and consumer electronic machinery and auto parts, would become duty-free. Most remaining tariffs will be eliminated within 10 years. ``We think virtually all of our members will benefit from the FTA,'' Jackson said.
AMCHAM, which has over 2,000 members, has continued to be a staunch supporter of the FTA. It has stepped up lobbying efforts, with its "Doorknock" in Washington, D.C., aimed at giving lawmakers a picture of what Korea is like today.
``Unfortunately, a lot of American policymakers particularly in Congress have the image of Korea in the 1980s in their minds _ a command economy and less freedom of competition. We're trying to let them look at Korea today, as an emerging leader on the economic and international policy front,'' Jackson said.
AMCHAM's efforts seem to be gaining traction. A group of Republican senators earlier this month called on Obama to set a timeline for ratification of pending FTAs with Korea, Panama and Colombia to create jobs.
Sen. John Kerry, chairman of the Senate Foreign Relations Committee, and Richard Lugar, a ranking member of the same committee, pushed for the ratification of the FTA before Seoul hosts the G-20 summit.
Aside from the FTA, AMCHAM, which is the oldest chamber of commerce in Korea, is forging ahead on other issues _ launching a committee in Busan; and focusing on opportunities in energy, green growth and biopharmaceutical sectors.
``After the FTA is done, we will see a lot more cooperation and activities in more sectors. As Korean and American businesses develop in the coming years, we will see all these new sectors opening up for partnerships,'' Jackson said.
cathy@koreatimes.co.kr
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