Posted on 12/05/2010 10:35:39 AM PST by 1rudeboy
The pact's changes weren't worth the three-year delay.
What a long, strange journey it's been for the South Korea-U.S. free trade agreement. The two sides announced this weekend that they've reached a deal on revisions to the draft that was signed in 2007 but never ratified. It comes not a moment too soon, given the boost this will give to a U.S. economy stumbling its way to recovery and with tensions rising on the Korean peninsula.
The saga also will serve as a lesson to future U.S. Presidents on the importance of trade leadership. Having campaigned against the pact in 2008, President Obama nonetheless rediscovered its benefits as a spur to growth once in office. Yet by then he was forced to reopen negotiations as a way to justify his earlier opposition. The result is a deal that is slightly better than the excellent 2007 text in some ways, but slightly worse in others. And this after a delay that has cost the U.S. global credibility on economic issues, not to mention the cost to the U.S. economy.
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The good news is that the 2007 agreement stays mostly in place. Korea still offers significant opening of its sheltered economy to American manufactured goods, agriculture and services. Within five years of ratification the deal will eliminate tariffs on 95% of the countries' trade in goods, and it also clears the way for greater trade in services by, for instance, opening Korea's banking industry.
Meanwhile, some of the changes to that 2007 text are helpful. The trade in cars was the main sticking point, especially as Detroit worried about Korea's longstanding use of technical barriers like onerous safety standards to limit imports.
(Excerpt) Read more at online.wsj.com ...
ping
Obama trade deal with South Korea = great thing.
I can almost hear tiny union heads popping all over the country.
Did you catch the part that states Obama’s deal is actually worse for the UAW than Bush’s? What a bunch of tools.
Hilarious!
How long before for the prices on HDTVs start falling? (maybe before Christmas?)
Doubtful (and I don’t know what the current tariff is, anyway).
Union math.
The timing is interesting. Would love to see a new Wikileak state department cable on just what else Korea had to give up to be protected from the looney to the north.
I agree that the timing is interesting. Obama was just there, and nothing happens. N. Korea gets frisky, and all of a sudden . . . .
How much of our defense are they paying for?
How much more are you willing to pay for a HDTV to make up for it? Don’t be silly.
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