Obama Looks to Pass Korea FTA in 2010 but Could Face Opposition
November 20 , 2009
World Trade/Interactive
President Obama signaled during a trip to Korea Nov. 18 that he wants Congress to approve legislation implementing the U.S.-Korea Free Trade Agreement by the end of 2010. Judging by comments from key lawmakers, however, the president could face difficulty in achieving that goal.
Speaking about the FTA in a press conference with Korean President Lee Myung Bak, Obama said he wants to “get the deal done” and that “the question is whether we can get it done at the beginning of 2010, [or] whether we can get it done at the end of 2010.” He opined that the Korea FTA has been partially a victim of congressional concern about “the incredible trade balances” the U.S. has developed over the last several decades, noting that the U.S. trade deficit with Korea is relatively small but that “there has been a tendency … to lump all of Asia together when Congress votes on trade agreements.” Nevertheless, he acknowledged that “there’s certain sectors of the economy that aren’t dealt with as effectively” in the FTA and that as a result there are “still some details that need to be worked out.”
Perhaps the single biggest issue is expanded access to the Korean market for U.S. automobiles. An AFP article quoted President Lee as saying during the press conference that “if the U.S. thinks there is a problem in the auto [sector], we are ready to discuss it again.” However, Korean officials have steadfastly refused to reopen the FTA to address this issue, and Lee did not indicate whether that is in fact an option. House Ways and Means Trade Subcommittee Chairman Sander Levin, on the other hand, continued to insist that the agreement be renegotiated to lower Korean barriers to U.S. automotive exports, a position backed by a number of other lawmakers as well.
Even if this and the handful of other issues specific to the Korea FTA are ultimately resolved, growing congressional support for an alternative trade model could derail White House efforts to push the agreement forward. The same day Obama made clear his desire to implement the Korea FTA, members of the House Trade Working Group gathered in Washington to highlight widespread support for two pieces of legislation that would impose tough new requirements for U.S. trade agreements. The Trade Reform, Accountability, Development and Employment Act (H.R. 3012) outlines how future trade agreements should be structured and would require existing pacts to be revised. The Reciprocal Market Access Act of 2009 (H.R. 3786) would prohibit the U.S. from lowering or eliminating import duties under trade agreements without reciprocal and enforceable commitments from its trading partners. With more than a quarter of the House membership supporting one or both of these bills and mid-term congressional elections coming up next year, the administration may think twice about pushing ahead on a politically divisive issue like the Korea FTA.
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