Draft Resolution Urging the Presidential Administration and Congress to Support Continued U.S. Participation in the U.S.-Korea Free Trade Agreement (KORUS FTA)

Summary

Within the last decade, the Asia-Pacific region has become the fastest growing region in the world, with the International Monetary Fund predicting that it will remain the global leader of economic advancement and maintain 2018 growth projections of up to 5.4 percent. Since it came into force in 2012, the United States-Korea Free Trade Agreement (KORUS FTA) has been mutually beneficial for both parties, lowering and eliminating tariffs on U.S. exports and encouraging Korean foreign direct investment (FDI) in and imports to the United States which have led to job creation in the U.S. and a wider range of more affordable consumer goods for American families. This resolution calls on the Administration to reject the idea of withdrawal from KORUS FTA in favor of reforming the agreement in order to maintain mutual economic growth as well as diplomatic and strategic cooperation during a particularly precarious time.  

Draft Resolution Urging the Presidential Administration and Congress to Support Continued U.S. Participation in the U.S.-Korea Free Trade Agreement (KORUS FTA)

WHEREAS, the American Legislative Exchange Council (ALEC) policy on free trade acknowledges that “the imposition of artificial barriers to free and open trade…are deterrents to American economic interests;” and

WHEREAS, KORUS FTA was entered into force on March 15, 2012; and

WHEREAS, KORUS FTA has been the most largest U.S. FTA in more than 16 years and is the highest standard trade framework the U.S. currently has in force; and

WHEREAS, retaining the KORUS FTA at this time would send a strong signal to U.S. trading partners that America’s historic commitment to free trade and economic liberalization remains strong; and

WHEREAS, the Republic of Korea is the 15th largest economy in the world; and

WHEREAS, the Republic of Korea is the United States’ seventh largest export market and is a major customer for goods such as civil aircraft, electronics and technology, industrial machinery, plastics, chemicals, agricultural products including beef and services; and

WHEREAS, the FTA between the Republic of Korea and the United States made 94 percent of all trade between the two countries duty-free within three years and has eliminated most remaining tariffs within the last five years; and

WHEREAS, lower tariffs have increased demand for U.S. exports to the Republic of Korea; and

WHEREAS, KORUS FTA has strengthened our economic and strategic alliance with the Republic of Korea and underscores the U.S. commitment to the Asia-Pacific region; and

WHEREAS, KORUS FTA has provided a private sector-led stimulus by increasing exports and has contributed to America’s economic recovery through Foreign Direct Investment (FDI) which have created jobs; and