[Congressional Record (Bound Edition), Volume 154 (2008), Part 6]
[Extensions of Remarks]
[Pages 7724-7725]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      KOREAN FREE TRADE AGREEMENT

                                 ______
                                 

                         HON. DAVID G. REICHERT

                             of washington

                    in the house of representatives

                          Monday, May 5, 2008

  Mr. REICHERT. Madam Speaker, I am proud to represent the Eighth 
District of Washington State, which is the most trade dependent state 
in the Nation. We have a growing and vibrant economy based on 
technology and small business. Opening new global markets gives these 
businesses incentives to improve their products, produce more goods, 
and ultimately employ more American workers.
  The Korean Free Trade Agreement will benefit Washington State. We 
cannot afford to lose South Korea as a trade partner; in Washington 
State, one in three jobs relies on trade. In these uncertain economic 
times, we need to open markets, not reduce them. Congress must act now 
to preserve our trade relations and preserve American jobs. I 
respectfully submit the following article from the Seattle Times for 
the Record:

                        [From the Seattle Times]

            Korean Free-Trade Pact Important for Washington

                         (By Kathleen Connors)

       Two years ago, government and business leaders from across 
     the state welcomed U.S.

[[Page 7725]]

     and Korean officials to Seattle for a week of trade 
     negotiations. Seattle was chosen for a reason: Washington is 
     the most trade-dependent state in the country, and there are 
     already strong ties between Washington state and Korea.
       The U.S.-Korea Free Trade Agreement is now signed and 
     awaits congressional consideration. Last week, President Bush 
     welcomed to Washington, D.C., for the first time, newly 
     elected South Korean President Lee Myung-bak, who brought 
     with him an important present: an agreement to fully reopen 
     the Korean market to U.S. beef.
       South Korea had been the third-largest export market for 
     U.S. beef until 2003, when U.S. producers were effectively 
     shut out of the market. Washington state exported $50 million 
     of beef products to Korea that year, so the resumption of 
     exports beginning in May will be a welcome boon to local 
     producers.
       Lee's visit comes at a time when American trade policy is 
     again at a crossroads. Our continued ability to open foreign 
     markets and expand trade opportunities through trade 
     agreements is seriously at risk.
       There has been a long debate about the impact of trade on 
     America's economy. Despite political challenges, presidents 
     of both parties--supported by Congress--have consistently 
     promoted trade.
       Despite 95 percent of America's potential customers being 
     outside our borders, the era of trade cooperation may be 
     over. Trade has become a presidential campaign issue, with 
     candidates suggesting they would consider pulling the United 
     States out of the North American Free Trade Agreement. And 
     congressional leaders are threatening to defeat all pending 
     trade agreements, including agreements with Colombia, Panama 
     and Korea.
       Does the Korea agreement matter? It does for Washington 
     state. The Korea agreement is part of a broader Asia-Pacific 
     strategy for Washington, and Asian nations welcome their 
     relationship with the state. In 2007, Korea was Washington's 
     fifth-largest export market. The U.S.-Korea FTA would allow 
     nearly 95 percent of U.S. consumer and industrial exports to 
     become duty free within the first three years of the 
     agreement, and two-thirds of U.S. agricultural products will 
     become duty free immediately.
       Microsoft and Washington's many high-tech companies will 
     benefit from Korea's eliminating duties on all products in 
     this sector, as well as Korea's commitment to treat digital 
     products equally regardless of whether they are transmitted 
     in physical form or electronically. The agreement locks in 
     and improves an open trade regime for technology-related 
     services, such as telecommunications, computer and related 
     services, and audiovisual and recreational services. It also 
     strengthens protections for intellectual property by 
     deterring piracy and unauthorized sharing of music, video, 
     software and other content over the Internet.
       Korea is a long-term customer for Boeing. In April 2005, 
     Korean Air placed an order for up to 20 Boeing 787 
     Dreamliners in a deal worth approximately $2.6 billion at 
     list prices.
       For Starbucks, this agreement will reverse a very bad 
     trend. Coffee exporters had been excluded from previous trade 
     agreements, including NAFTA and the Central American Free 
     Trade Agreement. Under the Korea agreement, the bound tariff 
     of nearly 30 percent will go immediately to zero.
       Many of these products will be shipped through the ports of 
     Seattle and Tacoma, which already benefit from strong 
     relationships with Korean shippers Hanjin and Hyundai.
       But it's not just large businesses and their workers that 
     will benefit. In 2005, 89 percent of U.S. companies exporting 
     to Korea were small or medium-sized. Washington beneficiaries 
     include companies like Kaiser Aluminum in Spokane, and 
     Trinity Glass International in Tacoma.
       For Washington's farmers, the current 24-percent tariff on 
     cherries would be immediately eliminated in the industry's 
     top overseas growth market. The state's wine producers would 
     finally have a fair chance to compete for Korean consumers. 
     And Washington potato growers would immediately benefit from 
     an 18-percent tariff reduction in a market that generated $23 
     million in sales in 2006.
       So what's next? This agreement will not pass without our 
     active support. And we simply cannot take for granted the 
     votes of our congressional delegation. Those who oppose trade 
     have consistently been louder and more organized. And now 
     they use a stagnant economy as their latest argument for 
     voting down any trade agreement, despite export figures being 
     the bright spot in our current economic data.
       Washington state knows better. This agreement will have 
     clear benefits for our region. But we must overcome a tough 
     political season and an effective opposition to make this 
     agreement a reality.
       For Washington state, the agreement is a clear winner.

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