U.S. Gets Closer to Trade Deal with Korea

Long-delayed trade deals with South Korea, Colombia and Panama cleared a congressional hurdle on Sept. 5 and appeared set to get quick final approval.

The three pacts are expected to boost U.S. exports by about $13 billion a year and President Barack Obama’s administration estimates they will help create tens of thousands of jobs. The United States has lagged the European Union, Canada and the three potential new U.S. free trade partners which have all moved aggressively to strike new market-opening pacts.

Rep. Dave Camp (R-Mich.), the chairman of the House of Representatives panel that backed the deals, said they could not come at a better time for the struggling U.S. economy.

“With zero jobs created last month and the unemployment rate hovering above 9 percent, we must look at all opportunities to create American jobs,” Camp said.

The three pacts must be approved by the full House and the Senate to become law. The panel backed the pacts on the following bipartisan votes: Colombia, 24-12; Panama, 32-3; and South Korea, 31-5.

Camp said he expected the full House to approve the trade deals next week. The Senate also could move quickly enough for the pacts to be approved in time for South Korean President Lee Myung-Bak’s visit to the White House on Oct. 13. A Senate aide told the Reuters news service that talks were still under way.

The deal with South Korea is the largest U.S. trade pact since the North American Free Trade Agreement went into effect in 1994 and is expected to account for most of job gains.

U.S. manufacturing and services companies also broadly support the agreements, which will phase out tariffs and other barriers to U.S. exports. Import-sensitive sectors such as steel and textiles oppose the trade pacts, fearing they will lead to lost jobs.

The deal has the support of the medical device industry’s largest lobby.

“We strongly support efforts to expand market access for U.S. products abroad through the passage of the U.S.-Korea Free Trade Agreement (FTA), which will help improve U.S. competitiveness in a global economy,” said Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed). “The U.S.-Korea FTA has specific provisions addressing the concerns of the medical technology industry, and illustrates the benefits that these agreements can bring to the medical technology sector and to job creation in the U.S.”

According to the U.S. Department of Commerce, Korea is one of the largest and fastest growing markets for medical technology. U.S. manufacturers exported over $875 million worth of medical technology products to Korea in 2010, while Korea exported $331 million in medical technology products to the United States.

 “With a growing economy, the Korean people will come to demand an even higher level of healthcare and with that demand comes increased U.S. export opportunities. AdvaMed views the implementation of this agreement—the first FTA with specific provisions for the medical technology industry – as an opportunity to increase exports of medical technology products to this expanding market,” Ubl said.

He urged Congress to approve the legislation as quickly as possible.