CAT Talks Benefits of US-Korean FTA-Central Illinois' NewsCenter

 

The U-S Ambassador to the Republic of Korea spent the day in Peoria talking about the benefits of an agreement for both countries.

 

Eric Shangraw reports.

 

South Korea's Ambassador to the U-S hopes final details of a new trade agreement between his country and ours can be hammered out before President Obama's visit there in November. Han Duk-soo offered his time line after meeting with Cat's President Doug Oberhelman and driving a big yellow bulldozer.

 

"The new chairman (of CAT) has a lot of interest in Korean market, which is one of the most dynamic economies in Asia. Fourth largest economy in Asia and 15th largest globally," said Duk-soo at a Peoria press conference.

 

Caterpillar machinery manufactured in the U.S. being loaded on ships and sent to Korea is currently slapped with a four to eight percent tariff when it arrives overseas. That added cost to the sticker price would be eliminated three years after a free trade agreement with Korea is formally approved.

 

Cat reports exports to Australia doubled and exports to Chile tripled after free trade agreements were enacted with those countries. It is chomping at the bit for a trio of agreements to come to fruition.

 

"Whether is is the free trade agreement with Columbia or Panama or Korea. These are big deals," said Bill Lane, a Caterpillar lobbyist based in Washington.

 

"These will open up the markets to American companies. In fact it gives us preferential market access. And the flip side of that is if other countries enter into similar agreements that we are not part of, then we are disadvantaged," said Lane.

 

A free trade agreement would also mean new customers for Illinois' agriculture industry. Congressman Aaron Schock says the president has bi-partisan support to make the agreements law.

 

"I think it is just a matter of timing for the President on when he wants to send those bills. He talked about the need to double exports. I share that dream. I share that desire. But the reality is if you want to double exports you have to pass these trade agreements," said the Republican House member from Peoria.

 

Source: Central Illinois' NewsCenter Week News 25