A Trading Opportunity
For Congress, a chance to boost U.S. trade with Korea, three Latin American nations and beyond.
Scanning the headlines these days, you might think that bipartisan cooperation in the nation’s capital is entirely a thing of the past. Not so. Last month, the White House and congressional leaders from both parties achieved broad consensus on a matter of extraordinary importance to the future of the U.S. economy: they came together on key provisions to be included in future free trade agreements. Now, we hope Congress will build on this consensus by approving trade agreements that the United States has negotiated with Korea, Panama, Peru and Colombia.
In recent years, efforts to open markets for American goods and services have spurred U.S. economic growth and helped create millions of jobs for Americans. Continued progress on trade liberalization is critical to sustaining prosperity, creating more jobs and strengthening mutually beneficial relations with our trading partners. Also, approval of the four pending trade agreements will help maintain U.S. competitiveness as other nations negotiate bilateral trade deals in their interests.
The free trade agreement between the United States and Korea, for example, opens the door to increased trade with one of Asia’s major, growing markets, a nearly $1 trillion economy. The agreement, known as KORUS, will help U.S. companies compete on a more level playing field with Korean businesses, which already enjoy nearly unfettered access to the U.S. market. KORUS also sets a new standard for free trade agreements to be negotiated in the future.
KORUS is good for the U.S. technology sector. Last year, U.S. companies exported $8.3 billion in computer and electronic products to Korea. That number could grow significantly under KORUS, which would commit Korea to eliminating duties on all products in this sector, and to treating digital products equally regardless of whether they are transmitted in physical form or electronically. Similarly, KORUS locks in and improves an open trade regime for technology-related services (e.g., telecommunications, computer and related services, audiovisual and recreational services).
The agreement also strengthens protections for intellectual property by deterring piracy and unauthorized sharing of music, video, software and other content over the Internet. This is vital in Korea, where broadband access is even more widespread than in the United States.
KORUS will reduce and eliminate so-called non-tariff and behind-the-border barriers that have impeded trade and inhibited competition. It also will ensure greater transparency and regulatory due process.
Like the other pending free trade agreements, KORUS is a big win for U.S. exports, job growth and prosperity. By taking further action this year to renew and reinforce the nation’s free trade momentum, Congress has an opportunity to demonstrate again that bipartisan cooperation — and lawmakers’ commitment to getting things done on behalf of the American people — is very much alive.
