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277250 No. 277250-2

Document U.S.-Korea Free Trade Agreement: Potential Economywide and Selected Sectoral Effects, 2104-024, No. 277250-2 (U.S.I.T.C. Jun. 27, 2007)
Due to the size of the NAM's membership, although we endeavored to obtain our member's views on the U.S.-Korea FTA as quickly as possible following last week's hearing, we were unable to complete our brief in time sufficient to have it arrive at the deadline.
The FTA is not perfect - U.S. automakers have raised serious concerns with some tariff and non-tariff provisions they feel are not addressed sufficiently, and that will continue to block meaningful commercial access to Korea’s market for imported vehicles.
A failure to quickly and comprehensively negotiate, pass and enter into force this FTA with Korea runs the risk of U.S. firms becoming disadvantaged in the Korean market vis-a-vis a growing number of other trading countries.
In addition, the TBT agreement requires the formation of a working group which would immediately begin notification of regulations in three sectors of special interest to the NAM’s membership: cosmetics, household electrical appliances, motor vehicles, and noise/emissions.
Very importantly, the Agreement includes the investor-state dispute settlement mechanism that is vital to afford US investors the opportunity to ensure that their investments are protected against arbitrary, discriminatory and unfair government actions.
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Summary of Key Insurance Industry Gains No. 277037-2

Document U.S.-Korea Free Trade Agreement: Potential Economywide and Selected Sectoral Effects, 2104-024, No. 277037-2 (U.S.I.T.C. Jun. 27, 2007)
In the area of financial services, especially, greater transparency in rulemakingpractices are necessary for Korea to comply with domestic law and international supervisory best practices.
This practice has led to questions as what powers these groups(or “self regulatory organizations”or “SROs”) have over non- members and whether they sufficiently guard business proprietary information.
Aspart of the insurance obligations, Korea agreed to adoptpolicies and procedures based on the negative list approach to the productfiling process no later than one year after entry into force of
This Working Group will be a flexible arrangement allowing both governments to review future developments in the insurance sector on an ongoing basis.
Theissues affecting Korea Post and the Cooperatives will be specifically included in the Working Group to provide a meansfor continual monitoring of implementation
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No. 277251-2

Document U.S.-Korea Free Trade Agreement: Potential Economywide and Selected Sectoral Effects, 2104-024, No. 277251-2 (U.S.I.T.C. Jun. 25, 2007)

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276633 No. 276633-2

Document U.S.-Korea Free Trade Agreement: Potential Economywide and Selected Sectoral Effects, 2104-024, No. 276633-2 (U.S.I.T.C. Jun. 20, 2007)
COMMISSIONER OKUN: Mr. Chairman, thank you, and with the indulgence of the Ambassador and the witnesses here, I just wanted to take a brief moment because this is the last hearing at which I will be assisted ably by my economist, Warren Payne, sitting behind me.
2 2 pointed out well, the KORUS FTA, and I quote, Ifis an opportunity to anchor the U.S. Transpacific regional peace and prosperity for the Twenty-first Century at the time when some American leadership in Asia waning not to approve the free trade agreement with Korea would be a disastrous signal to send."
The U.S.-Korea Free Trade Agreement will create substantial new opportunities and economic benefits for U.S. businesses and farmers by eliminating high tariffs and restrictive non-tariff market access barriers in Korea.
Our industry believes that as we have seen with previous FTAs partners with highly developed economies, with strong comparative advantage in high- value and high-technology goods, our business can increase significantly after the FTA is implemented.
If I might just comment, the Commission is very much aware of the American Council of Life Insurers if for no other reason than it plays a significant role in sponsoring the Capital Challenge, the three mile foot race held in early May in Anacostia Park.
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277249 No. 277249-2

Document U.S.-Korea Free Trade Agreement: Potential Economywide and Selected Sectoral Effects, 2104-024, No. 277249-2 (U.S.I.T.C. Jun. 20, 2007)
Unfortunately, foreign governments such as China, and, to an lesser but still significant extent, Korea, have long inserted themselves in their respective textile sectors and, as a result, the U.S. domestic industry continues to lose thousands of jobs annually due to unfair competition and inadequate enforcement of our trade agreements.
Since Korea is a large textile-producing country with a vertically integrated industry which has historically enjoyed extensive support from its government, NCTO members have repeatedly stated they do not expect significant new export business to be generated from an FTA.
In addition, the ability of South Korean textile conglomerates or chaebols to use their allies in the banking sector to absorb losses over long periods of time also raises concerns and appears to remain unaffected by this agreement.
Rigorous Customs enforcement lies at the very heart of free trade agreements, particularly in sectors such as textiles where unscrupulous importers can save hundreds of millions of dollars by evading duties.
These steps began late last year, when Customs transferred NCTO notes that while TPA authority requires the U.S. government to take into account currency manipulation in FTA negotiations, KORUS is yet another in a string of FTAs that ignores this issue.
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