Published : Oct. 29, 2015 - 10:44
President Park Geun-hye’s official visit to the U.S. this month marked a significant milestone toward the next chapter in the 62-year alliance. The two nations charted new frontiers for the 21st century, paving the way forward for their future partnership in high-tech industries, climate change and global trade including the Trans-Pacific Partnership.
Yoon Sang-jick, the minister for trade, industry and energy.
First of all, President Park and President Barack Obama recognized the achievements of the Korea-U.S. Free Trade Agreement, which has been a catalyst and platform for facilitating bilateral trade and investment since its implementation in 2012.
The FTA is already bearing fruit, as it helped boost the bilateral trade in goods at nearly 5 percent annually to reach $115.6 billion in 2014. That’s more than 10 percent growth over the two years, while Korea’s overall trade growth rate reached an average of 2.1 percent.
Despite some trade issues raised at the early stage of the FTA’s implementation, the two partners have generally resolved them well, and will continue their close dialogue through relevant joint committees to resolve any further possible concerns.
Thanks to the Korea-U.S. trade pact, in particular, American goods with their high-quality and competitive prices are welcomed and gaining popularity in Korea. U.S. exports of medical products surged 90.9 percent last year from 2011, and U.S. farmers are finding more Korean customers for their produce such as cherries and almonds, which now make up more than 95 percent of the Korean market.
The U.S. automobile industry is another of the major beneficiaries from the FTA, as its shipments to Korea surged 37 percent annually during the first two years of its implementation. GM’s full-sized sedan Chevy Impala has become the second bestseller in its competing category in Korea since its local launch in August, while Ford’s Explorer is one of the most popular large sports utility vehicles on the Korean market.
The two countries are also working together to improve their trade in services and facilitate bilateral investment on the back of the FTA. The U.S. is posting an annual bilateral service surplus of about $10 billion, and Korea invested about $9.1 billion in its second-biggest trading partner in 2014, which is about 2.5 times more than that of the U.S. in the Asian tiger. Thus the KORUS FTA is bringing mutual and balanced benefits to the U.S. and Korea.
By building on this win-win partnership, we are marching together to create a new path for our future economic cooperation by focusing on promising new industries in which both countries have strengths. President Park was accompanied on her second U.S. trip by a historic business delegation of the country’s 164 leading innovative and high-tech companies, of which more than 100 were small and medium-sized enterprises.
About 104 Korean companies and 190 U.S. industry buyers held one-on-one meetings at business fairs in New York and Washington to explore new opportunities. With this big step toward the future, America’s innovating manufacturers had a chance to connect with Korea’s creative business partners and witnessed a golden opportunity to explore joint partnerships in new frontier industries.
These future partnerships will help expand the scope of bilateral trade between the U.S. and Korea beyond traditional industries such as cars, smartphones and semiconductors to fast-growing and promising new industries, including the Internet of Things and 3-D printing.
The U.S. and Korea also agreed to continue their joint efforts to fight climate change and finance the Green Climate Fund. By doing so, they can break new frontiers in green products and new energy technology, thus creating and expanding new business opportunities for the next century.
During the summit, the U.S. reaffirmed its welcoming and positive stance on Korea’s interest in the TPP, the world’s largest trade bloc. Korea has already adopted high-standard provisions under the Korea-U.S. FTA, and the two governments agreed to move forward into deeper consultations on Korea’s possible participation.
Citing a famous quote from Peter Drucker, “The best way to predict the future is to create it,” President Park reemphasized the importance of the U.S.-Korea cooperation for the creative future of the two countries at the 27th U.S.-Korea Business Council held in Washington.
To this end, the U.S. and one of its closest allies and best friends must go forward together to pioneer the next chapter of their economic alliance for a brighter and more prosperous future.
By Yoon Sang-jick
The writer is the minister for trade, industry and energy. The views reflected in the article are his own. -- Ed.