Many Americans remember that in 1950 through 1953, the United States went to the rescue of South Korea when it was invaded by Communist North Korea, which was supported by Communist China. Fortunately, the U.S. rescue succeeded, and South Korea has become an important democratic nation, and a big trade partner with the United States.
Today, about 139,000 Tennessee jobs reportedly are supported by worldwide exports of goods produced in the state, including $469 million in Tennessee goods sent to South Korea in 2008 alone. U.S.-Korea trade amounts to more than $80 billion a year, and South Korea is the seventh-biggest trade partner of the United States. The Department of Commerce estimates that for every $1 billion in U.S. exports, 6,250 manufacturing jobs are created or supported in the United States.
South Korea has a big role in that job creation. It buys aircraft, semiconductors, heavy machinery, chemicals, agricultural products and other goods from us. And we buy lots of things — including cars — from South Korea.
A U.S.-South Korea free trade agreement was negotiated and signed in 2007 to facilitate mutual economic benefit between the countries. Such a deal is needed because currently, U.S exports to Korea are charged an average tariff of 11.2 percent, while tariffs on Korean exports to the United States are 3.7 percent.
The free trade pact is up for congressional consideration, and it has understandably strong support from many sectors of the U.S. economy. Under the pact, duties would be lifted on nearly 95 percent of trade in consumer and industrial products within three years. Most other tariffs would disappear within 10 years, according to Lawrence R. Meyer of Strategic Communications in Washington, D.C. He visited the Times Free Press a few days ago to promote the trade deal’s advantages for South Korea and the United States.
Further opening South Korea’s markets to U.S. goods is obviously desirable.
Congress should promote beneficial growth in trade between the United States and South Korea.
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