Auto Concerns Holding Back South Korea Trade Deal

Last night, President Obama once again mentioned how pending FTAs with Korea, Panama and Colombia can help kickstart the ailing US economy, but his speech contained a subtle, yet significant, rhetorical shift that laid bare his real priority: passing a $1 billion worker subsidy in the form of the dubious and controversial (and greatly expanded) Trade Adjustment Assistance.  As you may recall, over the last two months Obama has repeatedly called on Congress to pa

Max Fraad Wolff submits:We continue to see divergent streams of data on the US economy. There are flows of good news and flows of less bad, but far from good news. There is a macroeconomic dumbbell forming, defined by areas of strength at either end of a central void. The middle portion of the recovery is dramatically absent. Financial asset markets and large, globally diversified firms have begun the rebuilding process. Bond demand is red hot.

Today Secretary Gary Locke and the congressional delegation concluded their three-day trip to Seoul with a visit to the Demilitarized Zone – the border between South and North Korea – and a lunch with U.S troops and their families at Yongsan Garrison to thank them for their service. The group also met with leaders of South Korea’s Democratic Party and Grand National Party at Korea’s National Assembly to discuss the U.S.-South Korea Trade Agreement (KORUS). “Over the last few days we have had the opportunity to see first-hand the benefits that KORUS will bring to the economies of both the U.S. and Korea,” Locke said. “There is great demand for U.S. products -- from made-in-America cell phone components to life-saving medical equipment. This agreement will increase mutually beneficial trade, strengthen our economies and create jobs in both of our countries.” Locke also visited Seoul National University Hospital for a demonstration of Varian Medical Systems’ (Palo Alto, Calif.) advanced radiotherapy technology.  Varian is the world leader in this life-saving, cancer treatment technology with approximately $34 million worth of annual sales to South Korea.  Their equipment is manufactured in California and Utah and exported globally. Under the U.S.-South Korea trade agreement, the tariff on Varian’s products would be eliminated, making the company more competitive in the Korean market. 

Yesterday, President Obama sent three trade agreements to Congress for approval. While each of the trade agreements were negotiated differently, they are all share one thing in common. These three agreements are an integral part of the President’s efforts to increase opportunities for U.S. businesses, farmers, and workers through improved access for their products and services in foreign markets. Each supports President Obama’s National Export Initiative goal of doubling U.S. exports by 2015.All Trade Promotion Agreements have one thing in common. They reduce barriers to U.S. exports, and protect U.S. interests and enhance the rule of law in the partner country. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment make it easier and cheaper for U.S. companies to export their products and services to trading partner markets.This results in jobs here in America.The most common question about these agreements is, "What exactly is in them?" Below the fold are some of the key specifics for each agreement.

AS THE weak recovery continues, various experts continue to linger on the importance of manufacturing to growth in output and employment. America's economy will work again, many argue, when its workers are once again engaged in the critical task of making things. I continue to struggle to understand this focus.

AS THE weak recovery continues, various experts continue to linger on the importance of manufacturing to growth in output and employment. America's economy will work again, many argue, when its workers are once again engaged in the critical task of making things. I continue to struggle to understand this focus.