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Pluto
Joined: 19 Dec 2006
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 Posted: Sat Apr 19, 2008 8:30 am Post subject: Free Trade Agreements |
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U.S., South Korea Announce Deal
To End Ban on U.S. Beef Exports
By GREG HITT and EVAN RAMSTAD
April 19, 2008; Page A3
WASHINGTON -- The U.S. and South Korea agreed on a plan to lift the Asian nation's ban on American beef exports, removing a major impediment to action in Congress on a free-trade deal with South Korea, though significant hurdles remain.
The agreement came amid South Korean President Lee Myung-bak's first formal visit to Washington since taking office two months ago and was the result of a furious round of negotiations this week among trade officials for both countries. Seizing on the breakthrough, the White House vowed to press anew for action on the landmark trade deal.
U.S. Trade Representative Susan Schwab said the new protocol providing for renewal of beef trade will take effect in mid-May and will allow for "a full reopening of the market." Under the agreement, all U.S. beef and beef products from cattle of all ages will be allowed to be exported to South Korea. Before the ban, South Korea was the third-biggest importer of U.S. beef, buying $790 million worth in 2003. Since then, it has relied on Australia as its main supplier.
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It seems this FTA is going to go through, hopefully. This FTA is just what both of our countries need to give an economic boost in the proverbial arm. Bush and LMB are highly in favor of such a deal. The Korean FTA will be the most significant FTA since NAFTA; I really don't know if Ottawa, which has a conservative government too, is seeking an FTA with Korea. Trade between the two countries could skyrocket past $10B p.a. This FTA, just like the one with Colombia are important, not just because Korea and Colombia remain great allies, but because it would be a boon to all of our countries.
Unfortunately, hurdles do remain. The House of Representitives under the leadership of Nancy Pelosi  has decided to put the myopic and counter-productive views of the AFL-CIO ahead of the interest of the nation. in fact, I remember back in 2006 how she promised to usher an era of change for the world. Her intransigence is really working against the promises she made just a couple years ago.
Any way, do you see expanded economic prosperity from free trade or is it protectionism that will save the day for our economy. For me, expanding trade is analogous to expanding economic opportunities. This has been proven since the time of Adam Smith and continues to be proven by relevant economic theory and economic models. Should trade be expanded or restricted? What about the Doha rounds stuck going nowhere fast. Do you envision a world-wide trade agreement something like Doha anytime soon?
Last edited by Pluto on Sat Apr 19, 2008 11:36 am; edited 1 time in total |
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Kuros
Joined: 27 Apr 2004
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| Posted: Sat Apr 19, 2008 9:52 am Post subject: Re: Free Trade Agreements |
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| Pluto wrote: |
Unfortunately, hurdles do remain. The House of Representitives under the leadership of Nancy Pelosi has decided to put the myopic and counter-productive views of the AFL-CIO ahead of the interest of the nation. in fact, I remember back in 2006 how she promised to usher an era of change for the world. Her intransigence is really working against the promises she made just a couple years ago.
Any way, do you see expanded economic prosperity from free trade or is it protectionism that will save the day for our economy. For me, expanding trade is analogous to expanding economic opportunities. This has been proven since the time of Adam Smith and continues to be proven by relevant economic theory and economic models. Should trade be expanded of restricted? What about the Doha rounds stuck going nowhere fast. Do you envision a world-wide trade agreement something like Doha anytime soon? |
Nancy Pelosi is truly a loathsome Majority Leader. But my sense is that only her loyalists would come out for her to stop this. Would the Blue Dogs move to interrupt this deal? I doubt it.
FTAs are almost always desirable for the two countries involved. The problem is that FTAs create their own barriers to agreements for international accords like DOHA.
But the Korean FTA will be the most important multinational trade agreement the US has signed since NAFTA. The strategy is to pressure Japan to come to the table by signing an agreement with two of its three largest trading partners. But exports between the US and the ROK have been steadily dropping, anyway. Something needs to be done. |
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Pluto
Joined: 19 Dec 2006
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| Posted: Sat Apr 19, 2008 10:52 am Post subject: Re: Free Trade Agreements |
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| Kuros wrote: |
| But exports between the US and the ROK have been steadily dropping, anyway. Something needs to be done. |
Actually, trade has been steadily increasing between the two countries according to the chart posted above. I think what you meant to say is that trade has been decreasing in relation to China.
I forgot to mention other problems such as the chaebol. Korea seems determined to protect its auto, cell phone as well as other electronic industries. This is unfortunate for Korea's part, but I suppose these things can be amended in the future.
The article also mentions that LMB has decided to lift the ban on all US beef imports as a measure of good faith to the Congress. Hopefully, in time, the extra competition will result in lower beef prices. They were about 5000won/100g last time I checked. |
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Kuros
Joined: 27 Apr 2004
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| Posted: Sat Apr 19, 2008 11:35 am Post subject: Re: Free Trade Agreements |
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| Pluto wrote: |
| Kuros wrote: |
| But exports between the US and the ROK have been steadily dropping, anyway. Something needs to be done. |
Actually, trade has been steadily increasing between the two countries according to the chart posted above. I think what you meant to say is that trade has been decreasing in relation to China.
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I remember there was a mutual 5-7% drop in total exports for each side during the 2005-2006 period. This came from another statistic. |
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mindmetoo
Joined: 02 Feb 2004
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| Posted: Sat Apr 19, 2008 4:37 pm Post subject: Re: Free Trade Agreements |
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| Pluto wrote: |
| Korea seems determined to protect its auto, cell phone as well as other electronic industries. This is unfortunate for Korea's part, but I suppose these things can be amended in the future. |
One might argue here who cares? If Koreans are happy to sell their cars to Americans cheaper than they sell them to Koreans, they're only hurting Koreans. Not Americans. Indeed if they can get Koreans to pay more for their cars allowing Hyundai to make a better profit and keep prices down in America, again, great for America.
You and I both know Koreans would not buy many American cars. In fact, Koreans are happier than pigs in their own poop to pay more for their home produced goods.
The 300,000 cheap cars they sell in America aren't going to be balanced by 300,000 American cars sold in Korea. Given that a Korea car is about $2000 cheaper than an American car, why do we want to sap $600,000,000 out of the pockets of Americans so GM/Ford/DCX can sell 20,000 cars in Korea? If Koreans want to buy a caddy or hummer and are sick of paying high prices, Koreans should be the ones asking their government to roll back duty.
And yes, the American dollars America sends to Korea for their cars comes right back to America. Koreans aren't using Korean money to pay Harvard tuition, buy land in Koreatown in LA, or shares in MSFT. Right? |
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Pluto
Joined: 19 Dec 2006
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| Posted: Sat Apr 19, 2008 7:55 pm Post subject: Re: Free Trade Agreements |
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| mindmetoo wrote: |
You and I both know Koreans would not buy many American cars. In fact, Koreans are happier than pigs in their own poop to pay more for their home produced goods. |
Per haps, but I think with the right marketing mix, anything is possible. For example if GE started selling refrigerators alongside LG ones in Emart for half the price and even deemed twice the quality, you think Koreans would prefer the LG brand over GE?
I don't know. Koreans are, rightly indeed, proud of their companies. I just think anything is possible at the right price. |
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