Monday, August 4, 2014

US-Korea Free Trade Agreement Results Darken Trans-Pacific Partnership

Ford Korea

Two years after the Obama administration heralded its free trade deal between the United States and South Korea, the latter's market remains relatively closed to the former's exports.

The Detroit News reports U.S. Senator Debbie Stabenow of Michigan, chairing her first Finance Committee subcommittee on international trade, proclaimed the free trade agreement fell short of expectations, noting the increasing deficit between the U.S. and South Korea by 50 percent in favor of the latter party, especially regarding automotive exports:

The agreement aimed to open Korea's markets to American automakers. But agreeing to phase-out tariffs on U.S.-made automobiles hasn't been enough. Due to non-tariff barriers, Korea remains one of the most closed auto markets in the world.

Ford vice president for international government relations Steve Biegun, also in attendance, said his employer will sell just 7,000 units in South Korea this year after 20 years of attempts to boost sales. Biegun said access to the Korean auto market remains a challenge, citing regulatory challenges.

This comes on the heels of the Trans-Pacific Partnership, which seeks to do with Japan, the United States and 10 other nations what the U.S. had sought with South Korea. Biegun, CEO Mark Fields and Chairman Bill Ford Jr. warn the deal needs increased measures to hinder Japan's ability to influence the value of the yen, while Stabenow adds there are "outstanding disputes" on agriculture and automobiles along other "very sticky issues" between all parties involved, especially Japan.

The post US-Korea Free Trade Agreement Results Darken Trans-Pacific Partnership appeared first on The Truth About Cars.



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