[Congressional Record Volume 152, Number 75 (Tuesday, June 13, 2006)]
[Extensions of Remarks]
[Page E1140]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




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

                                 ______
                                 

                            HON. DAN BURTON

                               of indiana

                    in the house of representatives

                         Tuesday, June 13, 2006

  Mr. BURTON of Indiana. Mr. Speaker, negotiations for a free trade 
agreement (FTA) between the United States and the Republic of Korea 
commenced last week in Washington, DC. I would like to recognize this 
historic undertaking and emphasize the significance of a U.S. trade 
accord with the Republic of Korea.
  On February 2, 2006, then-U.S. Trade Representative (USTR) Rob 
Portman and Korean Minister of Trade Hyun-Chong Kim announced our two 
countries would negotiate an FTA. Both sides hope to complete 
negotiations by March 2007.
  I applaud the decision by the United States to negotiate a bi-
lateral, free and fair trade agreement with a country that is not only 
a strong economic partner, but an important geographic ally as well. As 
my good friend and former USTR Rob Portman has noted, this agreement, 
if successfully concluded, will constitute the largest and most 
commercially significant FTA the United States has negotiated in 15 
years.
  The numbers are truly impressive. Korea is the 10th largest economy 
in the world with a GDP or nearly $1 trillion and a per capita income 
of over $20,000. It is the United States' 7th largest trading partner 
and our 5th largest market for U.S. agricultural products.
  Trade between our countries surpassed $72 billion last year alone and 
U.S. exports to Republic of Korea reached nearly $28 billion during the 
same year, and included important goods like computer chips, industrial 
machinery, organic chemicals, agricultural produce, and civilian 
aircrafts.
  Bolstered by an FTA, U.S. exports to Korea will no doubt increase 
substantially. A study by the U.S. International Trade Commission in 
2001 revealed that an FTA with Korea could increase U.S. exports by 
over 50 percent, and agricultural exports by more than 200 percent 
within four years.
  South Korea's average tariff on goods is just over 11 percent--three 
times higher than the U.S. equivalent. The average tariff applied by 
Korea on agricultural products is even higher--52 percent, An FTA will 
lock in duty-free access and help to reduce other non-tariff barriers 
for U.S. goods and agricultural products, providing significant 
opportunities for U.S. businesses, farmers, and ranchers, and provide 
another lucrative market for America's auto manufacturers and U.S. beef 
and beef-product exporters.
  This FTA will also help to stimulate job growth in the United States, 
not only as a result of increased trade but increased domestic 
investment as well. Koreans have invested nearly $20 billion in the 
United States, and have created American jobs through companies like 
Hyundai Motors, Samsung Electronics, and Kia Motors. And as the largest 
investor in Korea, the United States already has a leading presence in 
that country as well.

  An FTA would also benefit the great State of Indiana, which I proudly 
represent in Congress. Korea is Indiana's 10th largest export market, 
and Indiana exports $303 million in goods to Korea annually. And 
outside the realm of international economics, almost 10,000 Korean-
Americans reside in the State of Indiana and more than 2,000 Korean 
students study at Indiana's prestigious academic institutions.
  In fact, Indiana Governor Mitch Daniels and his staff are actually 
preparing to return to Asia to visit Japan and South Korea later this 
week so they can develop better economic and trading partnerships 
between Indiana and Asia. Governor Daniels is determined to make long-
lasting economic relationships in Asia, especially with Korean 
companies, as he works to improve Indiana's economy, create new and 
better Hoosier jobs, and ultimately drive ahead Indiana's economy well 
into the 21st Century.
  In addition to being a strong economic partner, Korea is a key U.S. 
ally and a very important one strategically. The United States and 
Korea have a mutual defense treaty that dates back to 1953, and Korea 
has supported U.S. military efforts abroad, as recently as in both Iraq 
and Afghanistan.
  Further, in the aftermath of Hurricane Katrina, Korea pledged over 
$30 million in aid for relief and recovery efforts--the 4th largest 
amount donated by any foreign country.
  This new partnership between the United States and South Korea is 
sure to be a win-win for both of our countries. I look forward to 
working closely with the U.S. and Korean negotiators as talks proceed, 
so that we can ensure the best opportunities for all Americans.
  Mr. Speaker, thank you for allowing me to extend my remarks to 
recognize the historic occasion of the start of formal trade 
negotiations between the United States and the Republic of Korea last 
week. I strongly encourage my colleagues to offer their own expressions 
of support for this important endeavor.

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