HILL BRIEFS

Schwab Says Korea Agreement Would Boost Automotive Trade

Tue. Apr. 29, 2008


Trade Representative Schwab said Monday there is no need to renegotiate auto provisions of the pending free trade pact with South Korea, calling the current proposal “a really, really strong deal when it comes to the automotive sector.”

In remarks to the U.S.-Korea FTA Business Coalition, a pro-trade group led by the U.S. Chamber of Commerce, Schwab rejected charges by Democrats that the pact fails to adequately address South Korean regulatory barriers to U.S. auto exports, Reuters reported. “Quite honestly, none of the arguments we’ve heard would justify reopening the agreement,” Schwab said.

Rep. Phil Hare, D-Ill., responded that many “nontariff barriers” have caused a trade imbalance in autos, with Korea exporting 700,000 cars to the United States in 2006 while U.S. carmakers sold only 4,000 in Korea.

“Completely opening up our markets to Korean automakers while their government continues to take steps to deny our imports is a slap in the face to struggling U.S. autoworkers,” Hare said.

Tue. Apr. 29, 2008