On Feb. 10, 2011, the U.S. and the Rep. of Korea (Korea) exchanged the legal texts reflecting the agreement they concluded on Dec. 3, 2010, to modify certain provisions of the 2007 U.S.-Korea Free Trade Agreement (FTA) regarding the passenger vehicle sector. These texts (AA) are to provide additional market access for U.S. exports to Korea, in particular by addressing non-tariff measures (NTMs) affecting U.S. exports. This report focuses on the impact of the AA and provides additional analysis of the effects of the reduction or removal of NTMs. U.S. exports of passenger vehicles to Korea would likely rise significantly in the long term under the provisions of the 2007 FTA as modified by the AA. Illus. A print on demand report.

The Obama Administration finalized negotiations with South Korea in early December 2010 on a bilateral free trade agreement. As a result, the administration is expected to submit implementing legislation to the 112th Congress on the proposed agreement, but to date has not indicated a timeline for doing so. The 112th Congress may also be asked to consider implementing legislation for proposed free trade agreements with Columbia and Panama. Congress not only plays a direct role in approving legislation that implements the provisions of free trade agreements, but also authorizes and appropriates funding for programs that are meant to provide special assistance to firms and workers that are dislocated as a result of lower barriers to trade. Since the proposed agreement covers a wide range of trade and investment issues, it could have substantial economic implications for both the United States and South Korea. South Korea is the seventh-largest trading partner of the United States, and the United States is South Korea's third-largest trading partner. Similar to other trade agreements, the proposed U.S.-South Korea Free Trade Agreement (KORUS-FTA) has attracted both supporters and detractors, primarily over the impact the agreement could have on employment in the economy. Supporters argue that the ...