IPI report endorses U.S.-South Korea FTA
The recently negotiated Free Trade Agreement with the Republic of Korea — now on Congress' desk — deserves immediate attention, according to a publication released today by the Institute for Policy Innovation.
'With American dominance in Asia eroding and Chinese economic activity increasing, it is vital that the U.S. affirm free trade with South Korea and the rest of Asia,' said Doug Bandow, the author of the report, in a statement Wednesday.
Bandow, a Cobden Fellow in International Economics at IPI, said estimates reveal that both South Korea and the United States will experience increased economic activity under the FTA.
'Among other benefits, the U.S. stands to receive reduced taxes on auto exports, duty-free farm exports, increased access by American firms to Asian business, patent protection and improved laws governing investments,' Bandow said. 'The longer-term gain would occur under a unified Korea, which will be an even more important economic market for U.S. concerns.'
The report also said that China now trades more with Korea than does the United States.
'Although the U.S. remains stronger when it comes to investment, as China's economy grows, so will its investments in the ROK, further jeopardizing U.S. dominance,' the statement said. 'With increasing political tensions and a fading military relationship, the U.S. should follow the lead of the multiple other countries which have already signed FTA's with (Korea).'
IPI report endorses U.S.-South Korea FTA
