Labor & Employment Law

AFL-CIO ?Strongly Opposes? Korea-U.S. Trade Agreement

By James Parks

Workers in South Korea last year protested the proposed trade deal with the United States.

AFL-CIO President Richard Trumka repeated our strong opposition to the South Korea-U.S. Free Trade Agreement (KORUS FTA) in its current form. In a statement late yesterday, Trumka said the agreement, negotiated by the Bush administration, ?would exacerbate our already lopsided trade relationship with South Korea, putting at risk thousands of good U.S. jobs in the auto, steel and other industrial sectors.? 

The agreement phases out tariffs on goods and services traded between the two countries. But, as now proposed, the agreement does not go far enough in eliminating the non-tariff barriers that currently prevent American products?especially autos?from entering the South Korean market fairly, he added. Trumka said trade negotiators should

go back to the table to address the imbalanced market-access provisions in the agreement, and to revisit the flawed investment, procurement and services provisions as well.   

President Obama promised a ?smart, fair and strong? trade policy, Trumka said.

The KORUS FTA does not meet this standard, and we will work closely with the administration and Congress to improve this agreement on behalf of American and Korean workers.

Read the entire statement here.

Over the weekend, Obama directed the U.S. Trade Representative to begin new discussions with South Korea to resolve outstanding issues in the FTA before Obama?s visit there for the next G-20 meeting in November. After those issues are resolved, Obama plans to submit the trade deal to Congress.

House Ways and Means Chairman Sander Levin (D-Mich.) said Congress will take an active role in the negotiations. In a statement, Levin said the proposed treaty ?does not effectively address the regulatory and tax barriers that have led to one way trade and hurt our industrial sector as well as kept out our beef.?

Until recently, South Korea was unwilling to discuss changes to address these vital issues in the industrial sector so they may be incorporated in the FTA along with the existing provisions for U.S. trade in agriculture and services.

Congress expects to be consulted actively in these negotiations, and the date targeted by the president can be met only if the outstanding issues are fully addressed with enforceable commitments.

Full post as published by AFL-CIO NOW BLOG on June 29, 2010 (boomark / email).