[Congressional Record Volume 152, Number 46 (Tuesday, April 25, 2006)]
[Extensions of Remarks]
[Page E580]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         RECOGNIZING THE LAUNCH OF U.S.-KOREA FTA NEGOTIATIONS

                                 ______
                                 

                         HON. GREGORY W. MEEKS

                              of new york

                    in the house of representatives

                        Tuesday, April 25, 2006

  Mr. MEEKS of New York. Mr. Speaker, in a ceremony held February 2, 
2006, in the Mansfield Room of the U.S. Capitol and attended by many 
Members of Congress, U.S. Trade Representative Rob Portman and South 
Korean Minister of Trade Hyun-Chong Kim announced the commencement of 
negotiations toward a U.S.-Korea Free Trade Agreement and signaled 
their commitment to conclude the talks by March 2007. The U.S. and 
Korea plan to implement the agreement by September 2007. In light of 
the fact that the FTA negotiations will officially begin next week, I 
rise to recognize the significance of this undertaking.
  Launching the United States-South Korea FTA talks is a critical step 
in the relationship with an important U.S. strategic ally and economic 
partner. I strongly believe that as we pursue market access for U.S. 
exporters, it is to our advantage to strengthen already constructive 
relationships with our allies. South Korea is our seventh largest 
trading partner and a friend in a challenging region of the world. 
Advancing the economic relationship makes sense and will be an 
important benefit to two great nations.
  Close engagement between the U.S. and South Korea has paved the way 
for FTA negotiations. Even before the official announcement, the South 
Korean Government demonstrated how important it considers improved 
trade relations with the United States. South Korea took the concrete 
step of reducing the long-standing quotas that limited the screening of 
films by the American entertainment industry. I am encouraged by the 
progress that has been made so far on addressing several trade 
concerns. I am confident that South Korea will continue to work closely 
with the USTR Rob Portman toward making this endeavor a success.
  The FTA negotiations will officially begin on May 3, following the 
expiration of the statutory 90-day consultative period. In the interim, 
our two governments have agreed to hold preliminary discussions. 
According to reports, once the FTA takes full effect, over 90 percent 
of traded goods between the U.S. and Korea will be phased out over 10 
years.
  Mr. Speaker, in the interest of underscoring the importance of these 
talks, permit me to list a few salient facts about the U.S.-Korean 
economic relationship.
  South Korea is a stable, democratic country with a free-enterprise 
economy and a gross domestic product of $726.5 billion in 2005, making 
it the world's 11th largest economy.
  The per capita income of South Koreans in 2004 is an impressive 
$14,162.
  As noted by the Los Angeles Times, South Korea is now the seventh 
largest trading partner of the United States, with over $72 billion in 
trade volume each year. Moreover, South Korea is the fifth largest 
market for U.S. agricultural products.
  U.S. exports into South Korea totaled $25.1 billion through November 
of 2005, up 4.6 percent from the same period in 2004, with the biggest 
U.S. sales coming in computer chips, $4.2 billion; industrial 
machinery, $1.4 billion, organic chemicals, $1.3 billion, and civilian 
aircraft at $953 million.
  At the same time, South Korean exports to the United States totaled 
$40.1 billion through November 2005, down 5.4 percent from the same 
period in 2004, with the biggest South Korean sales coming in passenger 
cars, $7.2 billion; household goods, including cell phones, at $5.7 
billion; computer chips, $2.8 billion; and computer accessories, 
televisions, and VCRs at $3.9 billion.
  According to a study done in 2001 by the U.S. International Trade 
Commission, a U.S.-Korea free-trade agreement could increase U.S. 
exports to South Korea by $19 billion and U.S. imports from South Korea 
by $10 billion.
  Finally, according to the U.S. Department of Commerce, during the 
2004 calendar year, 627,000 South Koreans visited the United States for 
tourism and business travel, representing the fifth largest foreign 
market of tourists, excluding Canada and Mexico.
  Mr. Speaker, for these reasons, I wish to recognize the launch of the 
U.S.-Korea Free Trade Agreement negotiations and I encourage my 
colleagues to offer their own expressions of support. South Korea is a 
longstanding and trustworthy ally of the United States and a mutual FTA 
would only further solidify and reinforce our alliance partnership.

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