The White House has compiled statements of support for the newly agreed-upon U.S.-Korea Free Trade Agreement, with endorsements from John Engler, President of the National Association of Manufacturers, and many others:

Representative Steny Hoyer (D-MD)
Representative Dave Camp (R-MI)
Representative Sander Levin (D-MI)
Rep. Allyson Schwartz (D-PA)
Rep. Kevin Brady (D-TX)

Alan Mulally, CEO of Ford Motor Company
Thomas J. Donohue, U.S. Chamber of Commerce President and CEO
Jeff Immelt, Chairman and CEO of GE
Jim McNerney, Chairman, President and CEO of The Boeing Company and Chairman of Business Roundtable’s International Engagement Initiative
(continue reading…)

President Obama met with members of the House Trade Working Group at the White House yesterday to hear their concerns  the U.S.-Korea Free Trade Agreement (FTA). Meanwhile,  promising developments have occurred with the other two nations with which the United States has pending free trade agreements – Panama and Colombia.

Panama and the United States came to agreement on a Tax Information Exchange Agreement (TIEA), which is one of the outstanding issues that the Administration has indicated needed to be concluded before it would consider moving the U.S.-Panama FTA. Anything that can remove an impediment to a part of the stalled trade agenda is a very good thing.

Of course, over the last few months the business community’s focus has been squarely on the Administration’s discussions aimed at getting a final deal on the U.S.-Korea FTA. If those discussions over resolving the disputes over beef and autos are successful — and it is a shame they weren’t finalized in Seoul last week – that trade agreement could be sent to Congress early in 2011.  U.S. manufacturing exports to Korea are in the neighborhood of $25-30 billion annually over the last few years, and Korea has a manufacturing import sector worth $250 billion annually – so it’s a big deal.

During this same period, the Administration has been working closely with Panama, and with a successful TIEA, we could conceivably see (and we HOPE to see) movement on that trade agreement as well in 2011. Panama is engaged in the largest civil works project on earth right now (expanding the Panama Canal), and it would be fantastic for U.S. companies to be exporting duty-free the equipment, materials, engineering services and everything else this $5 billion project needs as soon as possible.

This leaves us with our last pending trade agreement – Colombia — and as the country’s new Ambassador Gabriel Silva recently told reporters, Colombia has been removed from the International Labor Organization’s watch list because of widespread improvements his government has made in controlling violence against labor activists. This goes to the heart of what the Administration and some Congressional Democrats have been asking for; Colombia is to be commended for its long commitment, under both previous President Uribe and current President Santos, in pushing for improvements. (continue reading…)

While the National Association of Manufacturers is disappointed that President Obama and Korean President Lee were unable to close out the U.S.-Korea Free Trade Agreement negotiations this week, we fully support their efforts. The KORUS FTA would be the largest bilateral U.S. trade deal since NAFTA, and it matters to U.S. manufacturers. The agreement eliminates tariffs on 95 percent of consumer and industrial products between the countries within three years, opening up the world’s seventh largest economy. But the NAM has said from the day the agreement was signed that the U.S. auto industry believes there has to be more market access in Korea, particularly by reducing non-tariff barriers. We sincerely hope that when the U.S. and Korean trade negotiators meet again, that they will achieve that market access so that the United States can begin receiving the benefits of free trade that our competitors are about to receive. The stakes are getting higher.

In just the past week, the United States’ two largest trading partners have announced aggressive trade policies to ensure that their exporters have new access to world markets and keep their economies competitive. Meanwhile, the United States continues to debate whether to take Korea, Colombia and Panama’s offers to eliminate for American exporters their tariffs and other trade barriers. Both Japan and the EU have free trade agreements with these countries already or are proposing to negotiate them.

Japan has long remained in the shadows of international economic leadership because of its inward looking agriculture policies, but the Japanese government announced this week that it will press ahead with fundamental domestic reforms in order to implement comprehensive free trade agreements. It said it will put all goods on the table in trade negotiations. It is going to resume free trade negotiations with Korea. At the same time, Japan will be seeking a China-Japan-Korea FTA and an East Asian Free Trade Agreement (EAFTA). Unlike the United States, Japan also wants to speed up a study of a possible agreement with the European Union.

On the other side of the world, European Commission on Nov. 9 announced a trade policy to help revitalize Europe’s economy. (continue reading…)

From the joint news conference held Thursday by President Obama and President Lee Myung-Bak of South Korea.

President Lee:

Now, with regards to the Korea-U.S. free trade agreement, President Obama and I agreed that we will give my trade minister and the U.S. Trade Representative more time so that they can finalize the technical issues. And President Obama and I will continue to work together so that we can have a mutually acceptable agreement at the earliest possible date.

President Obama:

As President Lee just noted, we discussed the need to keep moving forward towards a U.S.-Korea free trade agreement, which would create jobs and prosperity in both our countries.  We believe that such an agreement, if done right, can be a win-win for our people.  It could be a win for the United States because it would increase the export of American goods by some $10 billion, and billions more in services, supporting more than 70,000 jobs back home.

It could be a win for South Korea, with more access to the American economy, which would support jobs, raise living standards, and offer more choices for Korean consumers.  And it could be a win for the overall economic partnership between our two countries by bringing us closer together, allowing us to benefit from each other’s innovations, and ensuring strong protections for workers’ rights and the environment.

So we have asked our teams to work tirelessly in the coming days and weeks to get this completed, and we are confident that we will do so.  And President Lee in fact asked his team to come to Washington in the near future to continue these discussions.  So I appreciate all the efforts that he’s making on this issue.

And here’s a selection of reading to catch up on the President’s trip to Asia and negotiations over the U.S.-Korea FTA:

• Washington Post, “Obama ends Asia tour with ailing nation“
• Reuters, “U.S.-Korea trade pact faltered over autos: U.S. official”
• Chosun Ilbo (Korea) editorial, “Arm-Wrestling Could Jeopardize Korea-US FTA”
• New York Times, “Obama’s Trade Strategy Runs Into Stiff Resistance”
• The Australian, “Free trade the answer, PM tells leaders
• Sydney Morning Herald, “Unite for free trade, Gillard tells G20 leaders“
• Phil Levy, American Enterprise Institute, writing at Foreign Policy’s Shadow Government blog, “The KORUS catastrophe“

CNN.com, “Cameron seeks to boost UK trade relationship with China“:

(CNN) — British Prime Minister David Cameron and a contingent of ministers and business leaders arrived in Beijing Tuesday as part of a tour to boost bilateral trade with the world’s second-largest economy.

“This week I am leading one of the biggest and most high-powered British delegations ever to visit China,” Cameron said in a piece written for the Wall Street Journal.

“We aim to deliver more than 40 specific agreements across the whole range of our bilateral relationship, from trade to low-carbon growth, to cultural and education initiatives,” he said in the piece that appeared Tuesday.

“All of it, seeking to take Britain’s relationship with China to a new level and to achieve strong co-operation on our shared economic and political interests.”

BBC News reports that 43 business leaders accompanied Cameron to China, and, “Engine maker Rolls-Royce has won a $1.2bn (£750m) contract – the biggest of the visit so far.”

The Washington Post reports, “For U.S., free-trade agreement could be backdoor to China.” Reuters this morning follows with, “South Korea, U.S. go down to wire on trade talks.”

For CEOs, these are peripatetic times: “120 Global CEOs to Attend G20 Business Summit.”

The President travels further in Asia, the lameduck Congress draws closers, and the G20 meets in Seoul. Thursday is a federal holiday, Veterans Day, and the National Association of Manufacturers will be closed.

President Obama’s Trans-Asian Express takes him to Indonesia — barring further volcanic eruptions – South Korea and Japan. The G20 opens Wednesday in Seoul, with the President in attendance. Expect more public comments embracing trade, with the possibility of an announcement about moving forward with the U.S.-Korea Free Trade Agreement after the President parleys with his Korean peer, Lee Myung-bak. The President also attends the APEC summit in Yokohama starting Saturday, a stop that includes a tête-à-tête with new Japanese Prime Minister Naoto Kan.

It is the final week before 111th Congress returns for its first lameduck session on Monday, Nov. 15. Every day that passes brings the Jan. 1, 2011, tax increases closer, so expect more pre-session disputes, arguments, and “partisan squabbling.” But better a lameduck flap than a lameduck flop.

Economic Reports: On Tuesday, the Commerce Department releases wholesale trade inventories for September. Commerce releases international trade figures for September on Wednesday, with economists anticipating a narrowing of the trade deficit.

Executive Branch: U.S. Trade Representative Ron Kirk travels to Yokohama for the APEC summit  (USTR schedule). Fresh off his trip to Scotland and Ireland to promote “clean” energy, Energy Secretary Chu starts a new tour Sunday to China and Japan. Stops  include a visit to Huaneng Power’s carbon capture and storage project and on Monday, a tour of  GE’s China Technology Center. Interior Secretary Ken Salazar and HHS Secretary Kathleen Sebelius on Friday attend a groundbreaking ceremony for a new visitors center at the Tallgrass Prairie National Preserve in central Kansas.

Starting today in Washington, D.C., the National Oil Spill Commission and its Chief Counsel Fred Bartlit hold a two-day hearing on preliminary findings regarding BP’s Macondo well blowout

News accounts today reflect determination both by top U.S. and Korean officials that the outstanding auto and beef issues in the U.S.-Korea FTA will be addressed by the Seoul G-20 meeting on Nov. 11 and 12. From the U.S. side, Deputy Assistant to the President and Deputy National Security Advisor for International Economic Affairs and Development Michael Froman said yesterday at a White House press briefing: “We will be putting every effort into achieving an acceptable agreement, a satisfactory agreement by the time the president goes to the G-20.” Mr. Froman also noted that the U.S. negotiators are expending “maximum effort” in order to resolve “all of the issues” related to the KORUS agreement.

Secretary of State Hillary Clinton, in a speech in Honolulu on Oct. 28, noted that the U.S. and Korea “enjoy a vibrant economic relationship, which is why our two Presidents have called for resolving the outstanding issues related to the U.S.-Korea Free Trade Agreement by the time of the G-20 meeting in Seoul.” Secretary Clinton returned to trade later in her speech, noting not only the importance of the KORUS FTA but its key starting role in a larger U.S. pro-trade agenda for 2011 focused on Asia-Pacific.

This messaging is also reflected in today’s Korean press, which are reporting that President Obama and President Lee talked by phone. Korea’s official news agency Yonhap reports “In their telephone talks, the leaders agreed that the FTA ‘should be forged to promote free trade in the world and upgrade the South Korea-U.S. alliance by a notch,’ and that “they agreed to try to reach a compromise before the Seoul G-20 summit from Nov. 11-12.”

It is a very positive sign when very senior officials continue to reiterate their hope and desire to wrap up discussions on the automotive and beef issues still outstanding in the KORUS FTA as the deadline approaches. It is also a good sign that these talks are referred to on both sides as “discussions” rather than “negotiations.” Secretary Clinton’s remarks that put the KORUS agreement at the head of an ambitious trade agenda are heartening. We would suggest that our pending FTAs with Colombia and Panama also be added to that agenda (both border the Pacific Ocean). But this all hinges on finalizing a deal on autos and beef. We encourage both sides to keep moving forward over the next 10 days.

The National Association of Manufacturers has been a strong supporter of the KORUS agreement, but has also always said that more was needed to address the auto industry’s concerns on market access in Korea. We are hopeful that agreement on this is near.

Lori Wallach, of the Public Citizen group, has played a cruel trick-or-treat joke on Wisconsin coated paper workers. And for this reason, it deserves a response as Ms. Wallach is misleading these workers and tricking them into supporting her biased view of trade agreements –- agreements that have allowed more made-in-Wisconsin products to be sold around the world.

In an October 27th report on the website of the Green Bay station, News Talk Radio WTAQ, Ms. Wallach blames trade agreements for layoffs in Wisconsin’s paper mills and claims government researchers say the Korea trade agreement would create more jobs lost and a greater U.S. deficit.

This is simply not so. First, imports of coated paper into the United States are already duty-free –- meaning there is no tax on the product. Thus, there is no advantage with the Korean trade agreement for more Korean coated paper to be imported to the United States. And while Wallach claimed the U.S. Government said the agreement would cost jobs and increase the U.S. trade deficit — the “official” U.S. government International Trade Commission analysis says the Korea agreement will increase U.S. exports more than imports, shrink the trade deficit, and generate over $11 billion in added economic growth for the United States – thus creating most needed jobs.

The paper industry’s problem isn’t trade agreements – it is unfair imports from China. While coated paper imports from Korea are only half as large as five years ago, they have doubled from China because of unfair trade practices. Only last week, the U.S. Government put tariffs as high as 170 percent on dumped and subsidized exports from China. Had Wallach raised her voice against these unfair trade practices instead of misleading American workers about trade agreements maybe the government would have acted faster.

I hope these paper mill workers will not allow themselves to be tricked into supporting someone’s failed biases. They should demand the facts and decide for themselves what is needed to boost U.S. manufacturing. For example, consider NAFTA. It is now Wisconsin’s largest export market, buying over $8 billion of Wisconsin’s production in 2008 – more than twice as much as Wisconsin’s number two market, the European Union.

Korea’s import tariffs on U.S.-made manufactured goods average 8 percent, while U.S. import tariffs on Korean-made manufactured goods average 2 percent – and most U.S. manufactured imports from Korea are already duty-free. I think it is clear who will be the winner from the Korea trade agreement. Too bad Ms. Wallach can’t see it.

Frank Vargo is vice president for international economic affairs at the National Association of Manufacturers.

Ambassador Ron Kirk, the U.S. Trade Representative, and his Korean counterpart, Trade Minister Kim, are meeting in San Francisco today to discuss issues surrounding the automotive and beef provisions in the U.S.-Korea free trade agreement. You will recall that this summer, President Obama met with Korean President Lee and announced the two countries would discuss outstanding issues on autos and beef where the U.S. government had some concerns.

President Obama set the November 11-12 2010 G-20 meeting in Seoul as the date by which these discussions should be concluded and an agreement reached for submission to Congress.

So, there’s a lot riding on the meeting today between Kirk and Kim. As I noted yesterday in a Reuters article, no one expects the two Trade Ministers to come to an agreement today – but it’s a great opportunity for them to have an in-depth, frank and open discussion on what needs to be done and how it can be done. This meeting will, if past history is any guide, be followed by additional discussions and meetings, leading up to an agreement that President’s Obama and Lee can at some point around the G-20 meetings.

The National Association of Manufacturers certainly encourages the two Ministers to keep talking and moving forward. This agreement is extremely important to manufacturing in America – Korea is one of our largest trade partners and an key export market for our manufacturing products. Manufactured goods are almost two-thirds of all U.S. exports of goods and services to Korea.  I don’t discount the key importance the agreement has to our agriculture and services sectors, but this is overwhelmingly a manufacturing agreement.

There are clear economic consequences if an agreement cannot be reached. On Monday, U.S.  columnist Doug Bandow of the Cato Institute had a piece, “Korea Pact Essential to the U.S.” published in The Australian newspaper. He started off by noting:

US unemployment remains high. China is ever more confident and has displaced America as the No 1 trading partner with leading East Asian states. How have the Obama administration and Democratic congress responded to these challenges? By retreating economically from Asia. The US-South Korea Free Trade Agreement sits unratified in Washington. This policy was remarkable for both its economic and geostrategic folly.

My emphasis. I should note the Australians are racing toward the finish line of their own bilateral FTA with Korea. Bandow continues: (continue reading…)

As I reported from Seoul, Korea last week, there are multiple reasons why passing the U.S.-Korea Free Trade Agreement (KORUS) (as soon as possible) is exactly what the U.S. manufacturing economy needs to jump-start domestic growth, employment and expansion. I’m beginning to feel a bit like Paul Revere, trying to warn Congress and the Administration that as far as our exports are concerned in Korea, “The British are coming, the British are coming!”

Except it’s not just the British but an entire European Union’s worth of manufacturing that is coming, duty free, to Korea next year. We’re not the only ones sounding an alarm, of course. It was good to see Ambassador Han Duk-soo, Korea’s plenipotentiary to the United States, make the same point in San Francisco earlier this week. What Ambassador Han is essentially saying is: America, it is within your power to remove all the barriers in my country and increase your exports and grow your economy.

The decision not to use that power is a unilateral one that the United States has had on hold for more than three years with Korea, Colombia and Panama. We are patently acting against our own best interests, and the Europeans and others are flooding in to take advantage of our absence.

Not to belabor a point that has been raised by international economists and trade policy analysts across the political spectrum: Cutting tariffs and non-tariff barriers in foreign markets through preferential trade agreements does not reduce or outsource American factory jobs, it creates more of them. How? Our market is open, with tariffs averaging 2.5 percent. Most other markets (developing as well as some developed) in the world have tariff and non-tariff barriers that are far higher. When we sign a FTA with a country, its barriers come down, and as a result, our exports go up, both in volume and value, and more than our imports from that country. (continue reading…)