AeA Supports Passing the U.S.-South Korea Free Trade Agreement
New Report Highlights Benefits: Enhancing Market Access and IP Protection for U.S. High Tech

Washington, DC (May 13, 2008) – AeA, the nation’s largest technology trade association representing all segments of the high-tech industry, today released a report with the latest high-tech trade and investment data between the United States and South Korea. It argues that the U.S.-South Korea Free Trade Agreement (FTA) will benefit the U.S. high-tech industry and bolster the economic relationship with a vital trading partner and ally.

“South Korea is one of the world’s largest markets for U.S. high-tech goods,” said Rob Mulligan, AeA’s Senior Vice President, International. “Only six countries are larger export destinations for American tech products than South Korea. We urge Congress to pass this Free Trade Agreement. It benefits the U.S. high-tech industry by expanding market access and enhancing IP protection for U.S. exports, it benefits American consumers through lower cost consumer goods, and it strengthens our relationship with a strong ally in a strategically vital part of the world.”

The agreement eliminates tariff and non-tariff barriers on U.S. high-tech goods, provides nondiscriminatory treatment for digital products, criminalizes end user piracy, improves access to government contracts, enhances regulatory transparency, and streamlines customs processes.

The United States exported $8.9 billion in high-tech goods to South Korea in 2007, down from $10.6 billion in 2006, a 17 percent decline. Technology imports from South Korea to the United States totaled $15.6 billion in 2007, up by over $700 million from 2006.

Direct investment is also on the rise between the two countries. In 2006, U.S. direct investment in South Korea totaled $22.3 billion, 22 percent more than in 2005. South Korean direct investment in the United States totaled $8.6 billion in 2006, up 49 percent over 2005.

“Failing to pass the FTA with South Korea will put U.S. companies at a competitive disadvantage,” continued Mulligan. “Globalization and international trade will continue regardless of what the United States does. South Korea is negotiating FTAs with several other countries, including such major U.S. trading partners as Canada, the European Union, India, Mexico, and the ASEAN countries. The question that remains is: who will have favorable access to the large and lucrative South Korean economy, U.S. companies or foreign ones?”

This is the 22nd edition of AeA’s ongoing Competitiveness Series, which examines timely issues of relevance to the high-tech industry and to U.S. competitiveness in a global economy. All editions of the AeA Competitiveness Series can be downloaded for free at: www.aeanet.org/cs.


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About AeA
AeA, the nation’s largest technology trade association representing all segments of the high-tech industry, is dedicated solely to helping our members’ top line and bottom line. We do this in partnership with our small, medium, and large member companies by lobbying governments at the state, federal, and international levels, providing access to capital and business opportunities, and offering select business services and networking programs. For more information, please visit www.aeanet.org.

This page was last updated on 05/13/08.