Subscribe to our free, weekly email newsletter!


Global logistics: Obama’s plan to revisit U.S.-Korea Free Trade Agreement supported by UPS

image
By Jeff Berman, Group News Editor
June 29, 2010

Over the weekend, President Barack Obama said his administration is committed to resolving outstanding issues regarding the United States-Korea Free Trade Agreement (KORUS FTA) by November when he visits the country.

The U.S. and Korea inked the KORUS FTA in June 2007. At this time, the U.S. said that if approved this agreement would be the United States’ most commercially significant trade agreement in more than 16 years. And the U.S. International Trade Commission estimated that the reduction of Korean tariffs and tariff-rate quotas on goods alone would add $10 billion-to-$12 billion to annual merchandise exports to Korea.

By working to resolve these issues, Obama said it can result in “new jobs and opportunity for people in both our countries and enhance America’s competitiveness in the 21st century.”

But the trade agreement has been held up in Congress. A Reuters report said that much of the Congressional opposition is rooted in fear that the agreement will open the U.S. market to more South Korean cars and endanger the jobs of U.S. automakers that tend to vote Democratic. The report added that U.S. trade officials say that South Korean restrictions on U.S. beef are the other main obstacle blocking the pact.

And if this deal and other stalled U.S. trade agreements and Panama and Colombia were to come to fruition, there would be potential for them to help make significant inroads in Obama’s National Export Initiative goal, which vows to double U.S. exports over the next five years.

While this trade agreement remains at a standstill, the prospects of getting a deal done were soundly endorsed by UPS.

“South Korea has the 14th largest economy in the world and the increase in trade that will come from this agreement means more jobs and global competitiveness for the two countries,” said UPS Chairman and CEO Scott Davis in a statement.

“South Korea is our seventh largest trading partner and we need to protect and expand that relationship.”

UPS officials added that the company has supported the negotiation of the U.S.-South Korea Free Trade Agreement since its inception. UPS serves as a co-chair of a business coalition that is urging U.S. action, and it added that this agreement contains vital provisions for the express delivery industry, including enhanced market access and improved customs clearance times that allow companies like UPS to better serve its customers.

UPS spokesman Norman Black told LM that UPS unequivocally supports this—and all other pending—trade pacts.

“This is heartening in light of the President’s goal of moving the economy forward through the National Export Initiative,” said Black. “We all need to understand the value of trade and what it can do for the U.S. economy and to create jobs, despite complaints from critics who sometimes say it does nothing but remove jobs.”

 

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

UPS today announced diluted earnings per share of $1.32 for the third quarter 2014, a 13.8% improvement over the prior year period. Operating profit increased 8.3%, resulting from balanced growth across all three segments.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 4.4 percent from August 2013 to August 2014 at $100.6 billion.

As expected, global trade dipped from August to September but still saw annual gains, according to data issued this week by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Transportation and logistics merger and acquisition (M&A) activity in the third quarter saw annual gains, which were driven by smaller deals in the trucking logistics, shipping, and passenger air sectors, according to data issued in the Intersections report by PwC this week.

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

Article Topics

News · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA