U.S. FTA could reverse falling trade numbers

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U.S. FTA could reverse falling trade numbers

It is no news that the United States is one of Korea’s largest trading partners, which would make a Korean free trade agreement with the country more significant than those with Chile, Singapore or the members of the European Free Trade Association.
According to the Ministry of Commerce, Korea’s exports to the United States amounted to $43.2 billion in 2006, the second-largest total behind the $69.5 billion to China. The United States accounted for about 13 percent of Korea’s total exports.
In 2003, exports to the United States took up about 18 percent of Korean exports, but the figure has fallen every year since.
And while annual exports to the United States have steadily increased in monetary value since 2000, the growth rate has been below that of all other exports.
In 2006, exports to the United States went up 4.5 percent, compared to 14.4 percent growth in total exports.
A free trade agreement with the United States could reverse the trend, experts point out, since it would lower the tariff barrier and encourage more exports from Korea.
Meanwhile, Korea’s sluggish exports to the United States have also meant a falling trade surplus. It was $9.6 billion last year, falling below $10 billion for the first time since 2003.
On the other side of the ledger, Korea imported $33.7 billion worth of goods from the United States in 2006, the third-largest total behind Japan and China. U.S. imports took up about 11 percent of Korea’s total.
In the same year, automobiles topped the list of items exported from Korea to the United States at $8.8 billion ― around 20 percent of the total to the country.
Trailing automobiles were mobile communication devices, semiconductor chips, petrochemical goods, auto parts and computers.
As for imports, Korea brought in $5.8 billion worth of semiconductor chips from the United States. They were about 17 percent of all Korean imports from the country.
Other major imported items were manufacturing equipment, aircraft and their parts, computers, synthetic resins used to make vinyl, and a wide range of kitchen containers.


By Yoo Jee-ho Staff Writer [jeeho@joongang.co.kr]
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