Trade Facts…

                                                     Trade Facts
Office of the United States Trade Representative                                             www.ustr.gov
May 22, 2007

      Strong Support for the U.S.-Korea (KORUS) Free Trade Agreement

What They Are Saying:

""Korea is a very substantial market for the United States, with U.S. goods exports to Korea
totaling $32.5 billion in 2006 and U.S. cross-border services exports to Korea reaching $10.2 billion in
2005...The U.S.-Korea FTA will greatly expand market access in Korea for U.S. farmers, manufacturers, service
providers, and financial services firms. Under the FTA, more than half of current U.S. agricultural exports to
Korea--with a value of $1.6 billion--will become duty-free immediately. Almost 95 percent of all bilateral trade in
consumer and industrial products will become duty-free within three years under the agreement... Moreover,
this agreement will eliminate significant non-tariff market access barriers in Korea. Consumers in both countries
stand to gain from the broad benefits of this agreement...This agreement includes robust provisions on
transparency, intellectual property rights, competition, investment, and other rules, particularly in the area of
services, that will protect U.S. interests...By giving U.S. exporters and investors a preferential position in the
world's tenth-largest economy, an FTA with Korea will enhance U.S. businesses' ability to compete in the
dynamic Northeast Asia regional economy. From a strategic vantage point, the FTA will reinforce the critical
partnership and alliance between our two countries. The U.S.-Korea FTA stands to bring real benefits for U.S.
workers and businesses... The members of the Coalition look forward to working...to obtain passage of this
historic agreement."

        -Letter from the U.S.-Korea FTA Business Coalition to Members of the U.S. Senate and House
of Representatives, signed by over 150 companies, trade associations, and agriculture groups

"The new FTA with Korea will vastly improve our competitiveness in Korea by eliminating trade and regulatory
barriers on our exports and investments. It will also reinforce the ability of the United States to become more
competitive in Asia, one of the most important and fastest growing markets today."
           -John J. Castellani, President, Business Roundtable

"This agreement with the world's tenth largest economy has the potential to bring huge economic benefits to U.S
business, workers, consumers and farmers. It is one of the most important free trade pacts the U.S. has ever
achieved."
          -Peter M. Robinson, President, United States Council for International Business

"The negotiators put in a Herculean effort to obtain a comprehensive agreement that covers a broad array of
issues important to manufacturers... initial reports indicate that many manufacturers will benefit from the most
significant trade agreement in decades. The agreement appears to provide higher standards of protection for
U.S. investment in Korea, including in the important area of resolving disputes between government authorities
and foreign investors. Similarly, high standards of protection for intellectual property rights give confidence to
U.S. manufacturers..."
         -John Engler, President, National Association of Manufacturers


"[T]his is a good agreement that will go a long way toward opening the world's 10th largest economy to U.S.
exports and bring substantial benefits for American manufacturers, farmers, and service providers."
          -Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce
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"ECAT welcomes the announcement that the United States and Korea have successfully concluded FTA
negotiations. Korea is a major market for U.S. farm products, goods, services, and investment, with more
than $70 billion in two-way goods trade in 2006. When implemented, the FTA will eliminate major barriers
to the Korean market and, thereby, enhance opportunities for America's farmers, service providers,
manufacturers, and their workers. Close to 95 percent of bilateral trade in industrial and consumer goods
would become duty free within three years of implementation...Particularly important are the strong
investment provisions included in the agreement that are critically important for virtually every sector of
the U.S. economy and will enhance the ability of U.S. exporters to access the Korean economy."
         -Cal Cohen, President, Emergency Committee for American Trade


"This is the most commercially significant of all recent US free trade agreements. It addresses many barriers
that have hindered US services companies' ability to operate in the Korean market, and will provide a more
transparent and predictable business environment... by insisting on a comprehensive approach to market
access in services, as in previous FTAs, our negotiators have secured significant benefits for US service
providers."
         -Bob Vastine, President, Coalition of Services Industries


"This is a historic moment for the U.S. and Korea, and will take the Korea-U.S. economic relationship to the next
level."

        -William Oberlin, Chairman, American Chamber of Commerce in Korea

"We are pleased to hear that our two governments have reached an agreement, which should expand trade and
investment as well as strengthening the overall ties between our two countries. A successful agreement will
also be important to the region's development and the future trade and investment environment in Asia."
        -William Rhodes, Chairman, U.S.-Korea Business Council


"The US-Korea FTA takes important strides in recognizing financial services as one of America's most important
exports. The agreement will increase access to the Korean market for US financial products and services,
providing new opportunities for the US economy and for the more than 2 million workers employed by Financial
Services Forum member companies... The continued growth and vitality of the US financial services industry
depends on increased access to foreign markets and lower barriers to trade and investment such as those
provided in today's agreement."
        -Rob Nichols, President and COO, Financial Services Forum

         "The US-Korea trade agreement underscores the United States' commitment to furthering economic
growth and opportunity by reducing the barriers that deter competition and investment. Trade agreements such
as this are an economic win-win ­ fueling local industries and economies as well as presenting new
opportunities for investors."
         - Marc Lackritz, CEO, Securities Industry and Financial Markets Association


"This is a truly outstanding agreement that achieves the goals set for it by ACLI and our members. I urge
Congress to act as soon as possible to enact the KORUS FTA, and enable U.S. insurers to gain more equitable
access to the important South Korean market at a time when increasing the financial stability of Asia is a key
policy priority for the U.S.... The insurance provisions in the KORUS FTA set a higher standard for all future
U.S. FTAs. USTR Schwab, her counterpart in South Korea, and their teams of negotiators, deserve everyone's
congratulations for the comprehensive level of liberalization this breakthrough agreement achieves for
insurance."
         -Frank Keating, President and CEO, American Council of Life Insurers


"This is critically important to AIA and its members because Korea is the eighth largest insurance market in the
world, but for regulatory reasons, has been largely closed to us. Based upon information we have from U.S.
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trade negotiators, we believe this to be the strongest outcome for financial services ever achieved in trade
negotiations."
        -David Snyder, Vice president and assistant general counsel, American Insurance Association

"U.S. pork producers are excited about the new deal and will work very hard for congressional passage of the
agreement. NPPC is very appreciative of the great results attained by the president and his trade team,
including U.S. Trade Representative Susan Schwab, Agriculture Secretary Mike Johanns, chief agriculture
negotiator Richard Crowder and their staffs... the U.S. trade team came through for pork producers and
delivered a fabulous deal that will eliminate duties on U.S. pork exports and generate hundreds of millions of
dollars in new pork exports."
          -Jill Appell, President, National Pork Producers Council, and a pork producer from Altona, Ill.

"Because Korea is a trillion-dollar economy, exports of U.S. oilseed and meat products can be
expected to grow significantly as a result of this comprehensive Agreement. NOPA looks forward to the
submission of the Korean Free Trade Agreement to the Hill by the Administration and will work vigorously for
congressional approval."
       - Tom Hammer, President, National Oilseed Processors Association


"[W]e are pleased that we have an agricultural deal that will immediately help U.S. producers and manufacturers
be more competitive in the Korean dairy market...The tremendous time and effort put forth by our negotiators to
conclude this agreement are greatly appreciated by the U.S. dairy producers, processors and traders that NMPF
and USDEC collectively represent."
        - Jaime Castaneda, National Milk Producers Federation senior vice president and US Dairy
        Export Council senior policy advisor


"Korea is one of the United States' larger corn markets and the U.S.-Korea FTA will create new export
opportunities for bulk corn and coproducts."
          -Ken McCauley, President, National Corn Growers Association

"U.S. and South Korean officials deserve enormous credit for overcoming a number of challenges and reaching
this agreement. Robust international commerce is critical to our industry. American technology companies, and
the workers they employ, will benefit from this pact. South Korea is our seventh-largest trading partner and that
relationship will only grow stronger as a result of this agreement... Once again, federal trade negotiators are
demonstrating their commitment to opening new markets for U.S. businesses."
        - Charlie Robinson, interim President and CEO, Electronics Industry Alliance


"Korea is an important trading partner for creators of software and digital products. We applaud USTR's efforts
to bring this negotiation to a successful close. We are pleased with the apparent expansion in market access for
services and e-commerce, and, in particular, that there will be a continued reliance on the negative list approach
which promotes greater liberalization of services...We commend the negotiators from the U.S. and Korea for
reaching this significant milestone. Strong trade agreements open new markets, protect intellectual property,
and provide a framework in which our companies can deliver innovative digital products and services around the
world."
         -Ken Wasch, President, Software and Information Industry Association

"As an industry dependent upon globally integrated supply chains and new markets, we welcome
completion of the Free Trade Agreement with Korea and the potential for improved market access
opportunities for US high-tech companies...Enhanced IT tariff elimination and new commitments on ecommerce
will be a boost for the US IT sector in the Korean market. "
         -Rhett Dawson, President and CEO, Information Technology Industry Council


"While South Korea is already an important market for US high-tech companies, this FTA will
boost high-tech exports by eliminating tariffs on most products, improving access for services,
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strengthening intellectual property protection, and tackling non-tariff regulatory barriers...USTR has worked
closely with industry to ensure this agreement with Korea brings about meaningful new opportunities for our
members."
        -William T. Archey, President and CEO, AeA (American Electronics Association)


"[T]his free trade agreement will let the people of both nations continue to use and enjoy the latest in
[information and communication technology] ICT products... We are pleased that negotiators were able to
narrow their differences on ICT and give U.S. product and service providers reasonable access to Korea's
market."
         -Grant Seiffert, President, Telecommunications Industry Association



""This free trade agreement is an important milestone in our relationship with the Republic of South Korea and
further underscores to the rest of the world America's commitment to doing business in a global marketplace.
AIADA urges Members of Congress and other interested parties to rally behind this critical agreement within the
coming weeks to ensure continued choice for American consumers and our nation's economic competitiveness
well into the future."
     - Cody Lusk, President, American International Automobile Dealers Association


"This is a terrific achievement, and both governments are to be commended for their efforts in reaching a
successful conclusion. A strong agreement will benefit producers and consumers in both economies
immensely, and we look forward to learning about the particular provisions finalized...The U.S. book and journal
publishing industry suffers from widespread copyright infringement in Korea, especially in the academic sector.
The promise of strong provisions related to strengthening copyright laws and enforcement measures is exciting,
and we are thrilled with the efforts that the governments have put into addressing these important issues."
         -Pat Schroeder, President and CEO, Association of American Publishers



"The FTA will help enhance Korean patients' access to the most effective, innovative cures. I am particularly
pleased by the strong protection of intellectual property rights provided in the FTA...In the context of the FTA
negotiations, Korea committed to some significant improvements in market access for pharmaceuticals.
Further, Korea will enhance intellectual property protection increasing Korean patients' access to the most
innovative medicines. This will support ongoing investment in research and development by pharmaceutical
companies..."

        -Billy Tauzin, President and CEO, Pharmaceutical Research and Manufacturers Association of
        America


"We salute the U.S. and Korean negotiators for their dedication in reaching this agreement and look forward to
reviewing its substance in full. Korean copyright legislation and enforcement practices ­ particularly as they
relate to Internet-based theft ­ while recently improved, are still lacking... With the interests of musicians,
songwriters and record labels across the world on the line, we anxiously await Korean implementation of its
obligations."
    - Neil Turkewitz, Executive VP International, Recording Industry Association of America

"Our industry has been running a trade surplus with Seoul in recent years, a trend that stands to
improve even further with this landmark agreement...South Korea is the world's tenth largest economy and is in
the top echelon of our industry's trading partners...NEMA commends U.S. Trade Representative Susan Schwab
and her negotiating team for their achievement. We look forward to analyzing the final FTA package with them
and preparing for congressional consideration and passage as soon as possible."
    - Evan Gaddis, President and CEO, National Electrical Manufacturers Association

"We applaud the efforts of the U.S. and Korean negotiators in concluding this free trade agreement. The FTA
demonstrates Korea's commitment to increasing access for its citizens to lifesaving and life-enhancing medical
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technologies....Korea is an important market for U.S. medical technology companies. Last year, U.S.
manufacturers exported more than $670 million worth of medical technology products to Korea, an increase of
eight percent over the previous year."
        -Stephen J. Ubl, President and CEO, AdvaMed

"This agreement is a tremendous achievement for the United States. It will result in tangible and immediate
benefits for the U.S. distilled spirits industry...With a spirits market valued at $2.8 billion in 2004, Korea is one of
the most promising markets in Asia for U.S. spirits exports...It is clear that the U.S. spirits industry will benefit
significantly from the new market opportunities created by the FTA. We stand ready to support swift
Congressional approval of the agreement."
         - Christine LoCascio, Vice President, Distilled Spirits Council

"AT&T applauds the United States Trade Representative's ongoing commitment to promote competition and
encourage foreign investment in global telecommunications markets. We are particularly pleased the South
Korean Free Trade Agreement addresses the critical 21st century policy needs of communications companies
like AT&T...AT&T joins the USTR in calling for rapid approval of this agreement by U.S. and South Korean
lawmakers to ensure that consumers everywhere reap the benefits of a fully competitive global
telecommunications environment."
        - AT&T Statement

"The U.S.-Korea FTA will help significantly level the playing field for American
manufacturers by eliminating tariffs on many products that play important roles in the U.S.
economy, including those produced by the off-road equipment manufacturing industry which
AEM represents. Nearly 95 percent of bilateral trade in consumer and industrial products will
become duty-free within three years of entry into force of the agreement, with most remaining
tariffs eliminated within 10 years. AEM applauds Ambassador Schwab and her negotiation team for their hard
work in crafting a strong agreement that benefits American manufacturers and urges Congress to approve and
implement this agreement."
          -Statement by the Association of Equipment Manufacturers


"U.S. negotiators worked hard to achieve ASA's objectives. U.S. soybean growers will also benefit because this
agreement is expected to generate millions of dollars of new meat and poultry exports ...the agreement is very
positive because it will further open South Korea's market to U.S. exports of soy and other products."
         - Rick Ostlie, President, American Soybean Association, a soybean grower from Northwood, N.D.



"The National Potato Council (NPC) welcomes the conclusion of the U.S.-Korea Free Trade Agreement and
would like to thank the dedicated efforts of the U.S. Trade Representative's office (USTR) and U.S. Department
of Agriculture (USDA) in achieving this historic deal. The Republic of Korea is the fifth largest export market for
U.S. frozen fries with $23 million in annual sales. Korea is also a significant market for U.S. dehydrated potato
exports with over $1.6 million in sales in 2006... Although a strong and growing market, U.S. potato exports to
Korea have been hindered by high tariffs and quotas. The U.S. potato industry considers the U.S.-Korea Free
Trade Agreement as the best opportunity to overcome these barriers, expand trade, and ensure continued
dominant market share for U.S. potato products in the market."
        - Statement by the National Potato Council


"We are very pleased by the announcement," said while South Korea represents an estimated $38 million in
revenue per year for America's pistachio growers, the existing 30 percent tariff on pistachios was a significant
hurdle to realizing that market. We understand that once it goes into effect, the free trade agreement provides
for immediate duty-free treatment of U.S. pistachios. This presents a tremendous opportunity for America's
pistachio growers. We look forward to working with the U.S. Congress to swiftly approve the agreement."
        - Stewart Resnick, President, Paramount Farms, a pistachio grower from Calfornia's San
             Joaquin Valley
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"We congratulate President Bush and President Roh on reaching an outstanding agreement and we extend our
deepest thanks to the negotiators from both sides. Chevron looks forward to actively working to build public and
Congressional support for this important agreement,"
       - Peter Robertson, vice chairman, Chevron Corporation


"Korea is an economically significant wine market with its consumption growing 174 percent in the last five
years. We applaud the U.S. Trade Representative Susan Schwab and her team for helping to enhance our
industry's competitive stance in Korea,"
        - Robert P. (Bobby) Koch, President and CEO, Wine Institute

"We congratulate the US Trade Representative on reaching this agreement, and we look forward to engaging in
a dialogue with Congress on the benefits of robust international trade in information technology...The people of
the United States and South Korea have much to gain from this agreement. Not only will it expand opportunities
for American goods and services in South Korea, but it will reinforce high standards for e-commerce and
intellectual property protection."
         - Robert Holleyman, President and CEO, Business Software Alliance


"For the first time in a long time, we negotiated an FTA with a country that has a real opportunity for U.S. wine
and grape juice concentrate sales...The elimination of the tariff creates exciting market prospects for California
wine and concentrate."
        - Rodney Schatz, Chairman, California Association of Winegrape Growers, and a winegrape
grower from Lockford, Calif.


"The United States and South Korea have reached a trade accord that establishes new opportunities for small
and large companies on either side of the Pacific. The increase in trade that will come from this agreement
means more jobs and more global competitiveness for the two countries."
        - Alan Gershenhorn, President, UPS International



"Korea has become an important poultry market for the United States in recent years. The trade pact concluded
with Korea provides a good basis for enhancing poultry trade and will make Korea an even more important
market. Phasing-out import duties on U.S. poultry will provide longer-term benefits, while certain non-tariff
provisions will allow more immediate benefits...The National Chicken Council (NCC) appreciates the hard and
dedicated work of the trade negotiators to achieve a difficult agreement. NCC looks forward to working with the
Administration and Congress to see that the agreement is approved."
        -Statement by the National Chicken Council


"This agreement recognizes express delivery services as a unique service sector and includes key
commitments to maintain market access for our industry...We believe these new customs provisions establish
important benchmarks that will benefit express operators and our customers."
       -Sue Presti, executive director, Express Delivery & Logistics Association

"The Free Trade Agreement (FTA) with Korea is the first FTA in years that actually offers a market of meaningful
opportunity for the export of California and Arizona citrus. We are very pleased with the success of the recent
negotiations. The proposed tariff reductions offer increased market access and greatly improve the Korean
market for fresh citrus."
        - Mike Wootton, senior vice president of corporate relations, Sunkist
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"[W]e understand that dairy products, including cheese, whey and yogurt, will have expanded duty-free market
access through tariff rate quotas. Our members look forward to more opportunities to participate in the growing
South Korean market, and we support swift congressional approval of the agreement."
        -   Clay Hough, senior vice president, International Dairy Foods Association

"The U.S.-Korea FTA is the biggest free trade pact the United States has reached since it entered into the North
American Free Trade Agreement over a decade ago. This FTA sends a strong signal that the United States
intends to remain heavily engaged in the region for a long time to come in business, economics, security and
international politics."
         - Susanne Stirling, vice president of international affairs, California Chamber of Commerce


"The Greater Dallas Chamber commends both the U.S. and Korean negotiators on reaching this landmark deal
under such a tight deadline. Trade between the Dallas/Fort Worth region and South Korea continues to expand
reaching $4.98 billion in 2006 ­ making South Korea DFW's second largest trading partner. DFW businesses
stand to gain from the successful passage of this FTA. As such, the Chamber urges Congress to pass the
KORUS FTA in the next 90-days."
        - Victor Almeida, chairman of the International Business Council of the Greater Dallas Chamber
        of Commerce


"[T]his is the largest trade agreement for the U.S. since the 1994 North American Free Trade Agreement and is
of historic significance to the growth of our bilateral economic ties with Korea as well as the broader relationship
between the two countries. The agreement would have a positive impact on economic development in the
region and the investment environment in Asia....[I]t was now time to work together to raise the awareness of
the benefits and overall importance of this FTA to ensure its approval by the legislatures of both countries."
          - William R. Rhodes, Chairman, President and CEO, Citibank

"I want to congratulate [Ambassador Bhatia] and your staff on the conclusion of the historic agreement with the
Republic of Korea. As a strong supporter of free trade, FedEx welcomes the tremendous opportunities for
economic growth and expansion in trade and investment that will follow this agreement. This is truly an
outstanding achievement...We are committed to working...to ensure that this landmark agreement is approved
and implemented."
         -Michael L. Ducker, President, International, FedEx Express

"On behalf of the American Standard Companies, I want to thank [Ambassador Schwab] and your staff for your
efforts on the recently concluded Free Trade Agreement with Korea....Trane Commercial, the largest business
segment in American Standard, is a significant U.S.-based exporter of air conditioning systems to Korea. Our
products are made at plants in Colorado and Wisconsin...Korea's 8 percent tariff leveled against those products
not only prevents us from increasing our exports, but it also raises the cost to the Korean consumer. Thank you
again for your work on behalf of American exporters."
    - Frederic M. Poses, Chairman and CEO, American Standard Companies

"On behalf of Herbalife International of America, Inc., this letter congratulates [Ambassador Schwab] and your
staff on a successful conclusion to the negotiations on a free trade agreement with South Korea. Herbalife is
pleased with the tariff elimination schedule that has been negotiation for our herbal tea products...The U.S.-
Korea FTA will result in significant improvement in terms of market access for U.S. exporters. This increase in
market access will boost exports that will in turn create and sustain U.S. jobs in the states were Herbalife's
products are produced, namely California and New Jersey."
         -John Venardos, Vice President, Worldwide Regulatory and Government Affairs, Herbalife
International of America


"U.S. and South Korean negotiators have struck a landmark trade deal in the Korea-U.S. Free Trade Agreement
(KORUS FTA). If ratified, the agreement will provide American workers and businesses with new opportunities
and serve as a powerful statement of the U.S. commitment to East Asia....Passage would mean a new era for
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U.S. economic engagement with East Asia and expanded opportunities for the American economy. Failure,
however, would strike a blow to a key alliance that would reverberate for decades to come."

        -Bruce Klinger and Anthony B. Kim, Heritage Foundation


"South Korea is one of the fastest growing markets for U.S. exports, the seventh-largest U.S. trade partner,
and the world's tenth-largest economy. Its citizens enjoy a per-capita income of $24,000, placing them among
the world's richest. A free-trade agreement would increase U.S. national income by an estimated $17 billion to
$43 billion per year... On a per capita basis, Koreans are already buying far more from Americans than the
other way around. American businesses are doing quite well in the Korean market. If ratified, the U.S.-Korea
Free Trade Agreement, reached at the beginning of this month, will only bolster that success."

        - Daniel Ikenson, Cato Institute

"Of the fourteen FTAs in force or signed since the Bush administration launched its "competitive liberalization"
drive in 2001, Korea is far and away the most important from an economic perspective. It is a $1 trillion
economy, and the eleventh largest in the world. It is the United States' seventh biggest goods trading partner; ...
most importantly for the future U.S. role in East Asia, the U.S.-Korea FTA sends a strong signal that the United
States... is prepared to retake a leadership position in the region--and can match its ambition with results."
        - Claude Barfield, American Enterprise Institute

"For both economic and geopolitical reasons, the Republic of Korea (ROK) should be at the top of the
administration's list. In a last minute push at the end of March the U.S. finalized a proposed Free Trade
Agreement (FTA) with South Korea. The pact deserves prompt and positive action by Congress...[T}he
agreement substantially increases economic opportunities for Americans. For instance, the proposed FTA
reduces taxes on and addresses non-tariff barriers against U.S. auto imports. Many American farm products will
enter the ROK duty-free. South Korea will open its service market, increase the access of U.S. firms to the
broadcast, financial, and telecommunications sectors, improve patent protection, and improve the legal regime
for American investors... The relative boost for America's much larger economy would be...perhaps .2 percent
of GDP, but on an $11 trillion economy that isn't just loose change. The International Trade Commission figures
that a FTA could hike U.S. exports to South Korea by 50 percent."
        -Doug Bandow, Institute for Policy Innovation

"The Korea Society welcomes the agreement and looks forward to its ratification by the U.S. Congress and
Korea's National Assembly...Studies estimate that, once the agreement is put into effect by Congress and the
National Assembly, trade between the two countries will jump by $20 billion annually. Total gains for the U.S.
economy could range from $17 to $43 billion. The U.S.­ROK FTA will generate jobs in both countries. It will give
U.S. and Korean manufacturers unprecedented access to markets in each other's countries and will be a boon
for consumers in both nations. The U.S.­ROK FTA will deepen bilateral cooperation, and will substantially
strengthen the economic dimension of the U.S.­Korea partnership... The agreement reflects the hard work and
excellent efforts made by both countries' negotiating teams and the strong leadership exercised by presidents
Bush and Roh"
        -Statement by the Korea Society of New York