Are We Competing? ­ The U.S. - Korea Free Trade Agreement

By Chloe Colbert

The U.S. pushed and worked diligently to make sure that by the November 2010 G-20 Summit, President Obama would be ready to sign off on a free trade agreement with the South Korea. However, kick came to push, but the ride did not go as far as one wished, and the U.S. returned home empty-handed without a free trade agreement.

What could have happened? The U.S., with a mighty trade policy that emphasizes more exports and accessing the markets of potential trade partners like the ‘Asian tigers’ (Hong Kong, Singapore, South Korea, and Taiwan), claimed that restrictions in the auto industry for American automobile workers and in the beef industry prevented the trade agreement’s passage, according to the Asahi Shimbun news.

The White House signed a trade agreement with the Republic of Korea in 2007 during the Bush presidency, but the U.S. federal government did not move forward in passing it. For the past three years, the Office of the United States Trade Representative (USTR) has worked diligently in trying to pass a version of the U.S.-Korea Free Trade Agreement (KORUS), but it irreconcilable differences in the auto and beef industries prevented this passage.

The failed attempt in not passing KORUS did not only prove a loss for the U.S. in accessing the Korea market, but it also proved detrimental for the U.S. in aggressively interacting with the “Asian tigers”. The U.S. is seeking to include more of its Asian economic counterparts in its pending Trans-Pacific Partnership. U.S. trade officials recently attended the Asia Pacific Economic Cooperation Forum (APEC) in Japan this past week. But can the U.S. really garner what it needs to engage with these Asian economic powers?

In the next 20 years, the U.S. will see a change in Asian countries that not only will have become stronger economically but also better educated. To engage in trade agreements would show how the U.S. seeks to boost its own economy as well as create a brighter future for the employees and the families those export-based jobs support. The U.S. cannot just sit by the sidelines and wait for the Asian tigers to come to them.

The European Union will enact its free trade agreement with Korea in July. There is no time to waste. In an age where competition is no longer solely based on military strength but also on economic strength, a country must diversify its economy to involve international trade if it truly wants to compete. The passing of the KORUS agreement is still a hurdle for the U.S. to overcome, and it could be that overarching predictor for the future of U.S. trade relations and international economic competition. China currently has the second –highest gross domestic product. Let’s move forward, America, less we fall behind.

**Written for GW’s International Affairs Society (IAS) – The Informer