[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 266 Introduced in House (IH)]

112th CONGRESS
  1st Session
H. RES. 266

Expressing the sense of the House of Representatives that the President 
should, without any further delay, submit the United States-Korea Free 
    Trade Agreement to Congress for its consideration and immediate 
 approval under fast track procedures pursuant to the Bipartisan Trade 
                      Promotion Authority of 2002.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2011

Mr. Kelly submitted the following resolution; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                               RESOLUTION


 
Expressing the sense of the House of Representatives that the President 
should, without any further delay, submit the United States-Korea Free 
    Trade Agreement to Congress for its consideration and immediate 
 approval under fast track procedures pursuant to the Bipartisan Trade 
                      Promotion Authority of 2002.

Whereas the United States and South Korea signed the United States-Korea Free 
        Trade Agreement on June 30, 2007, and that agreement was modified and 
        again signed on December 3, 2010;
Whereas according to the United States International Trade Commission, the 
        reduction of South Korean tariffs and tariff-rate quotas on goods alone, 
        as a result of implementing the United States-Korea Free Trade 
        Agreement, will increase the annual gross domestic product of the United 
        States by $10.1 billion to $11.9 billion;
Whereas according to the United States International Trade Commission, 
        implementing the United States-Korea Free Trade Agreement will increase 
        annual goods exports from the United States by an estimated $9.7 billion 
        to $10.9 billion;
Whereas according to the United States International Trade Commission, 
        implementing the United States-Korea Free Trade Agreement would create 
        20,000 to 24,000 jobs in the United States;
Whereas according to the United States Trade Representative, implementing the 
        United States-Korea Free Trade Agreement will create at least 70,000 
        jobs in the United States;
Whereas according to the majority staff of the Senate Finance Committee, 
        Subcommittee on Trade, Customs and Global Competitiveness, with 
        technical assistance from the staff of the United States International 
        Trade Commission, implementing the United States-Korea Free Trade 
        Agreement will create up to 280,000 jobs in the United States;
Whereas by implementing the United States-Korea Free Trade Agreement, United 
        States exports would obtain immediate duty-free treatment on 80 percent 
        of South Korea's tariff lines, nearly 95 percent of bilateral trade in 
        consumer and industrial products would become duty free within 3 years 
        of the date the United States-Korea Free Trade Agreement enters into 
        force, and most remaining tariffs would be eliminated within 10 years;
Whereas South Korea is the seventh largest trading partner of the United States;
Whereas the United States is the third largest trading partner of South Korea;
Whereas South Korea is the eighth largest export market of the United States;
Whereas South Korea has a $1 trillion economy and is the 12th largest economy in 
        the world;
Whereas the United States-Korea Free Trade Agreement advances the President's 
        National Export Initiative goal of doubling of United States exports in 
        5 years, that is, by 2014;
Whereas United States goods exports to South Korea rose to $38 billion in 2010, 
        and South Korea was the fastest growing export market for United States 
        manufactured goods that year, increasing 39.6 percent;
Whereas South Korea is a huge market for United States small- and medium-size 
        enterprises, which made up 89 percent of United States businesses 
        exporting to South Korea in 2007 and accounted for $18 billion in United 
        States exports to South Korea;
Whereas implementing the United States-Korea Free Trade Agreement would create 
        new opportunities for United States businesses by leveling the playing 
        field for United States workers, manufacturers, and farmers in the 
        Korean market;
Whereas United States exports to South Korea currently face an average tariff of 
        12.2 percent (49 percent for agricultural products and 6.6 percent for 
        nonagricultural products), which is over 4 times higher than that which 
        the United States imposes, as well as a wide range of nontariff 
        barriers;
Whereas according to the United States Trade Representative, implementing the 
        United States-Korea Free Trade Agreement will allow providers of 
        services in virtually all major service sectors, such as delivery, 
        financial services, legal consulting telecommunications, education, and 
        health care, based in the United States to compete in the services 
        market of South Korea, which is valued at $580 billion;
Whereas according to the United States Trade Representative, implementing the 
        United States-Korea Free Trade Agreement would increase access to the 
        South Korean market and ensure greater transparency and fair treatment 
        for United States suppliers of financial services;
Whereas according to the United States Trade Representative, implementing the 
        United States-Korea Free Trade Agreement would address nontariff 
        barriers in a wide range of sectors and includes strong provisions on 
        competition policy, labor, and environment, and transparency and 
        regulatory due process;
Whereas according to the United States Trade Representative, implementing the 
        United States-Korea Free Trade Agreement would also provide United 
        States suppliers with greater access to the $100 billion South Korean 
        Government procurement market;
Whereas South Korea's average tariff on nonagricultural goods exported by the 
        United States is 6.6 percent, and the United States average tariff on 
        nonagricultural goods exported by South Korea is 3.2 percent, which is 
        over 2 times higher than that which the United States imposes as well as 
        a wide range of nontariff barriers;
Whereas implementing the United States-Korea Free Trade Agreement requires South 
        Korea to reduce auto tariffs immediately while phasing in corresponding 
        United States tariff cuts, reduces South Korean regulatory non-tariff 
        barriers on United States auto exports, and provides for tough United 
        States remedies by returning to pre-agreement levels if South Korea is 
        in material violation of the agreement;
Whereas United States auto manufacturers including the Big Three (General 
        Motors, Ford, and Chrysler), and the United Auto Workers Union endorse 
        the United States-Korea Free Trade Agreement;
Whereas South Korea is the fifth largest market for the exports of United States 
        agricultural products;
Whereas South Korea's average tariff on agricultural products exported by the 
        United States is 54 percent, while the United States average tariff on 
        agricultural products exported by South Korea is 9 percent;
Whereas implementing the United States-Korea Free Trade Agreement would 
        immediately eliminate or phase out tariffs and quotas on a broad range 
        of agricultural products, with almost two-thirds (by value) of South 
        Korea's agriculture imports from the United States becoming duty free 
        upon entry into force;
Whereas according to the American Farm Bureau, implementing the United States-
        Korea Free Trade Agreement will lead to a $1.8 billion increase in 
        United States agricultural trade per year;
Whereas the reduction of trade barriers to the United States promotes economic 
        development, creates jobs, and solidifying relations with South Korea;
Whereas increased trade will help to strengthen ties between the United States 
        and South Korea and advance important national security goals;
Whereas the United States-Korea Free Trade Agreement is the first United States 
        free trade agreement with a North Asian partner, the United States-Korea 
        Free Trade Agreement and the values of economic freedom and property 
        rights that it promotes could serve as a model for free trade agreements 
        with the rest of the region, and underscore the United States commitment 
        to, and engagement in, the Asia-Pacific region;
Whereas failure to implement the United States-Korea Free Trade Agreement allows 
        other countries to enter into free trade agreements with South Korea, 
        giving the businesses of these respective countries a massive 
        competitive edge over the United States in South Korea's market;
Whereas the United States was South Korea's biggest trade partner with a market 
        share of 21 percent in 2003 and has now fallen to third place with a 
        market share of 9 percent;
Whereas, on May 4, 2011, South Korea approved the European Union-Korea Free 
        Trade Agreement, which had already been approved by the European Union 
        on February 17, 2011, thereby placing the agreement on track to take 
        scheduled effect on July 1, 2011;
Whereas South Korea and Canada have a pending free trade agreement that is at an 
        advanced stage of negotiation;
Whereas according to the United States Chamber of Commerce, failure to implement 
        the United States-Korea Free Trade Agreement places as many as 345,000 
        United States jobs and $35 billion in United States exports at risk if 
        the completed European Union-Korea free trade agreement and the pending 
        Canada-Korea free trade agreement go into effect before the United 
        States-Korea Free Trade Agreement;
Whereas Peru has concluded a free trade agreement with South Korea that is 
        scheduled to be ratified by July 2011;
Whereas South Korea and Australia agreed on April 25, 2011, to conclude a free 
        trade agreement by the end of the year;
Whereas South Korea is also negotiating major free trade agreements with Chile, 
        New Zealand, and Mexico;
Whereas South Korea, China, and Japan have formed a Joint Study Committee to 
        discuss the formation of a trilateral free trade agreement;
Whereas the current state of relations between North Korea and South Korea call 
        for closer ties between the United States and its close ally South 
        Korea;
Whereas, on March 26, 2010, the South Korean naval vessel, Cheonan was sunk, the 
        cause of which was a torpedo fired by North Korea submarine, as 
        determined by the Joint Civilian-Military Investigation Group composed 
        of South Korean government officials and experts from the United States, 
        Australia, the United Kingdom, and the Kingdom of Sweden, in a 
        premeditated act in violation of the 1953 Armistice Agreement with South 
        Korea;
Whereas, on November 23, 2010, in a premeditated act in violation of the 1953 
        Armistice Agreement with South Korea, North Korean military forces fired 
        artillery shells at the South Korean island of Yeonpyeong, killing two 
        South Korean marines and two civilians and injuring sixteen other 
        members of the South Korean armed forces;
Whereas prompt approval of the United States-Korea Free Trade Agreement by 
        Congress will encourage the National Assembly of South Korea to approve 
        promptly the United States-Korea Free Trade Agreement;
Whereas the United States-Korea Free Trade Agreement respects United States 
        sovereignty by providing for a voluntary, non-binding trade dispute 
        resolution process involving a representative from South Korea, a 
        representative of the United States, and a representative from a 
        mutually agreed-upon third country;
Whereas under the United States-Korea Free Trade Agreement any adverse dispute 
        settlements against the United States are not self-executing and require 
        implementation by the President or Congress;
Whereas the United States-Korea Free Trade Agreement respects United States 
        sovereignty by imposing no obligations as to immigration;
Whereas the United States-Korea Free Trade Agreement respects United States 
        sovereignty by placing no restrictions on the United States to regulate 
        investment activity in accordance with environmental concerns;
Whereas the United States-Korea Free Trade Agreement encourages investment 
        opportunities in the United States and protects the property rights of 
        South Korean investors on an equal but not greater legal basis than that 
        of United States investors;
Whereas, on April 18, 2011, the President issued an Executive Order Prohibiting 
        Certain Transactions with Respect to North Korea, stating ``the 
        importation into the United States, directly or indirectly, of any 
        goods, services, or technology from North Korea is prohibited.'';
Whereas any export from North Korea to the United States must be licensed by the 
        Department of the Treasury's Office of Foreign Asset Control;
Whereas United States Customs and Border Protection, with cooperation by the 
        South Korean Government, prevents transshipment from North Korea by 
        ensuring that all parts comply with rules of origin and are properly 
        documented, and furthermore investigates any claims of non-compliant 
        shipment and seizes such shipments before they enter the United States;
Whereas any change to United States bans on exports from North Korea to the 
        United States requires an Act of Congress;
Whereas the United States-Korea Free Trade Agreement provides only for a 
        committee to conduct non-binding discussions between the United States 
        and South Korea regarding outward processing zones that may be 
        designated as originating from South Korea;
Whereas it is the position of the current presidential administration and the 
        prior presidential administration that any recommendation regarding 
        outward processing zones requires an Act of Congress to take any effect; 
        and
Whereas Ambassador Demetrios Marantis, Deputy United States Trade 
        Representative, testified before an April 7, 2011, hearing of the United 
        States House of Representatives, Committee on Ways and Means, 
        Subcommittee on Trade, that goods from Kaesong Industrial Complex do not 
        receive any benefits under the United States-Korea Free Trade Agreement 
        and that any change to current treatment of such goods requires the 
        Congress to pass and the President to sign legislation: Now, therefore, 
        be it
    Resolved, That--
            (1) the House of Representatives recognizes that the 
        implementation of the United States-Korea Free Trade Agreement 
        will--
                    (A) create jobs in the United States;
                    (B) increase export opportunities for businesses, 
                auto manufacturers, and agricultural producers in the 
                United States; and
                    (C) further develop cross-cultural business 
                relationships between the United States and South 
                Korea; and
            (2) it is the sense of the House of Representatives that--
                    (A) it is in the security, economic, and diplomatic 
                interests of the United States to enhance relationships 
                with South Korea, by immediately approving the United 
                States-Korea Free Trade Agreement;
                    (B) the President, in consultation with Congress, 
                should immediately submit legislation implementing the 
                United States-Korea Free Trade Agreement to Congress;
                    (C) such implementing legislation should be drafted 
                such that it qualifies for expedited (``fast track'') 
                legislative procedures set forth in the Bipartisan 
                Trade Promotion Authority Act of 2002 by approving the 
                agreement ``entered into'' in 2007 and including 
                provisions enacting, amending, or repealing existing 
                U.S. laws only to the extent that the provisions are 
                ``necessary or appropriate'' for the implementation of 
                the agreement ``entered into'' in 2007; and
                    (D) Congress should promptly consider and enact 
                this implementing legislation under fast track 
                procedures pursuant to the Bipartisan Trade Promotion 
                Authority Act of 2002.
                                 <all>