Korea trade deal supporters tout benefits to NJ
The long-delayed agreement reached yesterday between the White House and Congress on free trade with Korea would be a huge boost to New Jersey businesses, supporters of the plan said.
The state exported an average of $1.2 billion in goods to Korea from 2008 to 2010, and proponents said New Jersey’s exports could grow as much as 280 percent, which is how much state exports to Chile grew after a trade agreement in 2004, according to the U.S. International Trade Administration. U.S. exporters to Korea currently pay an average of 6.2 percent in tariffs, but Korean exporters to the U.S. face average tarrifs of 2.8 percent, according to the trade agency. Under the agreement, nearly 95 percent of consumer and industrial products would be duty-free within five years and two-thirds of agricultural exports would not face tariffs effective immediately.
In recent weeks, the Korean government has been lobbying heavily around the country in favor of the trade agreement, which has been pending approval in Congress during the debate over extending a federal aid program for American jobs lost to foreign labor, known as trade adjustment assistance.
On Monday, Korean Ambassador Han Duk-soo, U.S. Chamber of Commerce senior trade advisor Leslie Schweitzer and Prudential Financial chairman and CEO John Strangfeld met with The Star-Ledger’s editorial board seeking support of the agreement as essential to the vibrancy of New Jersey’s economy.
One element of the agreement would also change how foreign companies can operate in Korea, and it would help financial services like Newark-based Prudential with clarity and transparency in the country’s complex regulatory environment, Strangfeld said.
"Those are the kinds of things that enhance business effectiveness, and those are progressive steps that benefit all competitors," he said.
The company has had an insurance subsidiary in Korea for more than two decades and employs nearly 3,000 people there. Under the agreement, Prudential could sell more kinds of insurance, including marine and aviation, and it could operate divisions of the subsidiary outside the country, Ambassador Han said.
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