The U.S.-South Korea Free Trade Agreement Will
Improve Access for U.S. High Tech
Both Economies Will Benefit from Growing Trade and Investment,
AeA Report Says

Washington, DC (June 19, 2007) – AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, today released a report that outlines how the Free Trade Agreement completed between the United States and South Korea 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 high-tech goods from the United States,” said Rob Mulligan, AeA’s Senior Vice President, International. “Only five countries are larger export destinations for American tech products than South Korea. We need for Congress to pass this Free Trade Agreement – it is in America’s best interest. The United States benefits both economically and geopolitically by having a strong and vibrant South Korea.”

The agreement will benefit the high-tech industry by eliminating tariff and non-tariff barriers, providing nondiscriminatory treatment for digital products, criminalizing end user piracy, improving access to government contracts, enhancing regulatory transparency, and streamlining customs processes.

The United States exported $10.6 billion in high-tech goods to South Korea in 2006, up $700 million or seven percent from the previous year. Technology imports from South Korea to the United States totaled $14.9 billion in 2006, down by nearly $600 million from 2005.

Direct investment is also on the rise between the two countries. In 2005, U.S. direct investment in South Korea totaled $18.8 billion, 12 percent more than in 2004. South Korean direct investment in the United States totaled $6.2 billion in 2005, up 10 percent over 2004.

“If this Free Trade Agreement with South Korea is not approved, it will put U.S. companies at a competitive disadvantage,” continued Mulligan. “Let’s not forget that globalization and international trade will continue regardless of what the United States does. South Korea is negotiating Free Trade Agreements with several other 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 14th 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 with 2,500 member companies 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 http://www.aeanet.org.

This page was last updated on 06/19/07.