Benefits of the FTA
SUPPORT THE U.S.-KOREA FREE TRADE AGREEMENT
A cost-free, job creating agreement
The U.S.-Korea Free Trade Agreement (FTA) is a groundbreaking, market-opening agreement that would create new American jobs and opportunities for economic growth by immediately removing barriers to U.S. goods and services in Korea— an important market for U.S. workers, manufacturers, farmers, and producers.
1. CREATE NEW AMERICAN JOBS AND GROWTH
• Korea—the 15th largest economy in the world—is America’s 7th largest trading partner and 8th largest export market. Passing the U.S.-Korea FTA would boost U.S. goods exports by $10 billion to $11 billion dollars and U.S. GDP by up to $12 billion, according to the U.S. International Trade Commission.
• Trade and investment between the United States and Korea support tens of thousands of American jobs across the agricultural, manufacturing, and services sectors. This agreement would help expand American jobs across every sector of the economy by increasing U.S. exports and drawing new investment into the United States.
• Korea is a huge market for U.S. small and medium-size enterprises, which made up 89 % of U.S. businesses exporting to Korea in 2007 and accounted for $18 billion in U.S. exports to Korea.
2. LEVEL THE PLAYING FIELD FOR U.S. BUSINESSES
• The agreement would create new opportunities for U.S. businesses by leveling the playing field for U.S. workers, manufacturers, and farmers in the Korean market. U.S. exports to Korea currently face an average tariff of 12.2 % (49 % for agricultural products and 6.6 % for nonagricultural products), which is far higher than the United States imposes, as well as a wide range of nontariff barriers.
• The agreement removes significant market access barriers in Korea to U.S. goods, services, and investment. It includes strong provisions on transparency, intellectual property rights, competition, and other rules, particularly in the services sector, that would make U.S. businesses competitive in Korea.
3. PROMOTE GLOBAL U.S. COMPETITIVENESS
• Implementing the agreement would ensure that U.S. workers and businesses are not left behind as Korea and other Asian economies move forward with preferential trade deals that leave the U.S. out.
4. STRENGTHEN A CRITICAL PARTNERSHIP
• Korea is a close U.S. ally and a strong partner in advancing global security and in fighting economic isolationism. Implementing the FTA will strengthen the strategic partnership by deepening the links between our two countries as we work together to promote shared goals and values around the world.
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