A representative from the U.S. Embassy of Korea and a member of the Chamber of Commerce both stressed the importance of continued Korea-U.S. relations, emphasizing the benefits of passing the Free Trade Agreement in a discussion on Friday at the Boston University Castle.
Won-kyong Kim of the Embassy of Korea and Sean Connell of the Chamber, speaking to an audience of 20 students, said they were touring the United States to elaborate on what they saw as the potential rewards of the FTA, which is pending congressional approval.
The speakers said their stop at BU was slightly unusual, in a good way.
“Today’s talk is pretty unique,” Kim said. “Most of the time we talk with businessmen about commercial business interests, but it is great to talk about these issues with students who have a deep interest in the future.”
The United States and Korea signed the FTA in June 2007, but neither the National Assembly of South Korea nor the U.S. Congress has ratified treaty.
A Dec. 2010 compromise between the European Union and South Korea regarding free trade renewed hope that the FTA may pass in the United States.
Both Kim and Connell said they have been touring the country trying to gain support for the agreement.
“The prevalent criticism of the agreements is that the United States would be outsourcing jobs to Korea,” Kim said. “That criticism isn’t applicable. Korea is building factories in the U.S. giving Americans jobs, not vice versa.”
According to the U.S. Commerce Department, the FTA will create at least 70,000 new jobs in the United States. In addition, a report by Sen. Ron Wyden suggests the number may be closer to 280,000 jobs.
The FTA would decrease tariffs between the U.S. and South Korea by 95 percent within five years and eventually eliminate the tariffs all together. This initiative would benefit the United States because the average South Korean tariff is 11.2 percent while only 3.7 percent for the United States.
Connell elaborated on the mutually beneficial effects of this initiative.
“This agreement would broaden the relationship between the U.S. and Korea and open up both markets, growing trade,” Connell said.
Kim urged the United States to keep up with other countries, like Japan and China, which have overtaken the United States as the biggest traders to South Korea in the past 10 years.
However, Kim acknowledged the benefits for Korea as well.
“We get the lower tariffs, but also we saw this as a comprehensive reform package for the Korean economy. Our agricultural sector is a particular burden for the economy,” Kim said. “We need to provide assistance to farmers through different channels.”
Connell addressed criticisms that the FTA would hurt the trade balance. He pointed out that the trade deficit to Korea is only $2.9 billion, compared to $194 billion to China and $46 billion to Mexico.
“Right now our trade is pretty balanced and the FTA will just enable trade to grow and rapidly change the business environment,” Connell said.
Some students said they were interested in business relations between the United States and South Korea.
“We are seeing a lot of entertainment businesses flourish in Korea and I think the ratification of these trade agreements will only help it to grow,” said Camlinh To, a freshman in the College of Arts and Sciences.
Others students were drawn to the relationship between North and South Korea.
“I am very intrigued by North-South Korean relations,” said CAS freshman Sophie Miller. “I came today because I wanted to know what to expect in the future, specifically how worldwide instability would affect the region.”
CAS sophomore Sam Hodak said he was fascinated by the possibilities for the region as well.
“Given the Unites States’ role in North and South Korea, the situation and consequently the relationship between the U.S. and South Korea, becomes intensely interesting and very complicated,” Hodak said.