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US-Korea Free Trade Agreement Negotiations.” Written Submission to the USITC, Posthearing Comments, from the Ford Motor Company, June 27, 2007

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US-Korea Free Trade Agreement Negotiations.” Written Submission to the USITC, Posthearing Comments, from the Ford Motor Company, June 27, 2007 U.S. International Trade Commission COMMISSIONERS Daniel R. Pearson, Chairman Shara L. Aranoff, Vice Chairman Deanna Tanner Okun Charlotte R. Lane Irving A. Williamson Dean A. Pinkert Robert A. Rogowsky Director of Operations Robert B. Koopman Director of Economics Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 www.usitc.gov U.S.-Korea Free Trade Agreement: Potential Economy-wide and Selected Sectoral Effects Investigation No. TA-2104-24 Corrected printing March 2010 Publication 3949 September 2007 This report was prepared principally by Project Leader Nannette Christ [email protected] Deputy Project Leader Queena Fan [email protected] Office of Industries Lisa Ferens Alejandro, Jennifer Baumert, Laura Bloodgood, Joanna Bonarriva, William Chadwick, Roger Corey, Alfred Dennis, Eric Forden, John Fry, Erland Herfindahl, David Ingersoll, Cathy Jabara, Christopher Johnson, Joseph Kowalski, Katherine Linton, Dennis Luther, Brendan Lynch, Timothy McCarty, Deborah McNay, Erick Oh, Joann Peterson, Laura Polly, John Reeder, Mark Simone, Philip Stone, and Robert Wallace Office of Economics Nancy Bryan, Robert Feinberg, Michael Ferrantino, Alan Fox, William Powers, and Edward Wilson Office of Tariff Affairs and Trade Agreements Janis Summers Primary Reviewers Cathy Jabara and James Stamps Office of Investigations, Statistical Services Division Barbara Bryan Administrative Support Monica Reed and Pat Thomas Supporting assistance was provided by: Robert Blakey, Brian Bombassario, Nick Grossman, Dean Gudicello, Gerald Houck, Stacy Ma, and Ioana Mic Under the direction of Arona Butcher Chief, Country and Regional Analysis Division CONTENTS Page Abbreviations and Acronyms ............................... xi Executive Summary ............................................ xvii Overview.......................................................... xvii Summary of findings................................................. xix Goods market access ............................................. xix Impact of tariff- and tariff-rate quota-related provisions on the U.S. economy ................................................ xix Sector-specific assessments ........................................ xx Impact of market access provisions for services ........................ xxiii Impact of trade facilitation provisions ................................ xxiv Impact of regulatory provisions..................................... xxv Literature review ................................................ xxvi Chapter 1. Introduction ....................................... 1-1 Scope and approach of the report....................................... 1-1 U.S.-Korea FTA overview ............................................ 1-2 U.S.-Korea trade overview............................................ 1-3 U.S. merchandise exports .......................................... 1-5 U.S. merchandise imports.......................................... 1-6 FTA tariff commitments.............................................. 1-7 Chapter 2. Impact of tariff- and tariff-rate quota- related provisions on the U.S. economy ........... 2-1 Analytical framework................................................ 2-1 Simulation results................................................... 2-5 Estimated changes in trade flows.................................... 2-7 U.S. gross output and employment effects............................. 2-13 Economy-wide impact of implementing the immediate duty-free tariff lines................................................... 2-16 Chapter 3. Sector-specific assessments .................. 3-1 Grain (wheat, corn, and other feed grains)............................. 3-2 Assessment .................................................. 3-2 Views of interested parties...................................... 3-4 Oilseed products (soybeans and soybean oil) ........................... 3-5 i CONTENTS–Continued Page Chapter 3. Sector-specific assessments—Continued Assessment .................................................. 3-5 Views of interested parties...................................... 3-8 Animal feeds.................................................... 3-9 Assessment .................................................. 3-9 Views of interested parties...................................... 3-12 Starches ....................................................... 3-13 Assessment .................................................. 3-13 Views of interested parties...................................... 3-15 Citrus fruit ..................................................... 3-15 Assessment .................................................. 3-15 Views of interested parties...................................... 3-18 Noncitrus fruit .................................................. 3-18 Assessment .................................................. 3-18 Views of interested parties...................................... 3-23 Potato products ...................................................... 3-24 Assessment .................................................. 3-24 Views of interested parties...................................... 3-26 Other vegetables................................................. 3-28 Assessment .................................................. 3-28 Views of interested parties...................................... 3-31 Tree nuts (pistachios, almonds, and walnuts) ........................... 3-32 Assessment .................................................. 3-32 Views of interested parties...................................... 3-34 Dairy products .................................................. 3-34 Assessment .................................................. 3-34 Views of interested parties...................................... 3-36 Meat (beef, pork, and poultry)...................................... 3-37 Assessment .................................................. 3-37 Views of interested parties...................................... 3-42 Seafood........................................................ 3-43 Assessment .................................................. 3-43 Views of interested parties...................................... 3-45 Selected processed foods .......................................... 3-45 Assessment .................................................. 3-45 Views of interested parties...................................... 3-47 Nonalcoholic beverage products .................................... 3-49 Assessment .................................................. 3-49 Views of interested parties...................................... 3-51 ii CONTENTS—Continued Page Chapter 3. Sector-specific assessments—Continued Textiles and apparel.............................................. 3-51 Assessment .................................................. 3-51 Views of interested parties...................................... 3-56 Leather goods and footwear ........................................ 3-60 Assessment .................................................. 3-60 Views of interested parties...................................... 3-63 Pharmaceuticals ................................................. 3-64 Assessment .................................................. 3-64 Views of interested parties...................................... 3-66 Machinery, electronics, and transportation equipment.................... 3-68 Assessment .................................................. 3-68 Views of interested parties...................................... 3-72 Passenger vehicles ............................................... 3-74 Assessment .................................................. 3-74 Views of interested parties...................................... 3-85 Medical devices ................................................. 3-91 Assessment .................................................. 3-91 Views of interested parties...................................... 3-94 Chapter 4. Impact of market access provisions for services .............................................. 4-1 FTA Chapter 12—Cross-border trade in services ....................... 4-1 Assessment .................................................. 4-1 Summary of provisions ........................................ 4-4 Views of interested parties...................................... 4-4 FTA Chapter 13—Financial services................................. 4-6 Assessment .................................................. 4-6 Summary of provisions ........................................ 4-9 Views of interested parties...................................... 4-10 FTA Chapter 14—Telecommunications .............................. 4-11 Assessment .................................................. 4-11 Summary of provisions ........................................ 4-14 Views of interested parties...................................... 4-14 Professional services ............................................. 4-16 Assessment .................................................. 4-16 Summary of provisions ........................................ 4-16 Views of interested parties...................................... 4-19 Audiovisual services.............................................. 4-20 Assessment .................................................. 4-20 Summary of provisions ........................................ 4-22 Views of interested parties.....................................
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