“We applaud President Obama for recognizing the economic benefits this agreement will bring,” said Michael J. Stanton, CEO of AIAM. “The global competitiveness of automakers in both countries will improve and consumers on both sides of the Pacific will ultimately benefit from a closer, more dynamic, bilateral trade relationship.”
Known as KORUS FTA, the agreement has been signed by the two countries in 2007, but it has not yet been submitted to Congress for approval. President Obama wishes to forward the legislation for approval in November, perhaps together with similar agreements with Panama and Colombia.
"I've instructed U.S. Trade Representative Ron Kirk to begin discussions to resolve outstanding issues with the pending Korean Free Trade Agreement before my visit to Korea in November, an agreement that will create new jobs and opportunity for people in both our countries," the President was quoted as saying by allheadlinenews.com.
If approved, the agreement will allow for the elimination of Korea's 8 percent tax on US passenger vehicle imports, as well as the elimination of US taxes on Korean imported vehicles. Now being US' seventh largest trading partner according to the Congressional Research Service, Korea's economy could grow by an estimated $10 billion.
“In line with AIAM’s long-standing support for free trade and open investment policies, we offer our full support to the White House as it works to advance this historic free trade agreement,” Stanton added.