US autoworkers and Chrysler want Washington to renegotiate the KORUS FTA:
U.S. autoworkers and troubled automaker Chrysler urged Congress on Wednesday not to approve a free trade pact with South Korea until it has been renegotiated to address their concerns.
The deal struck in April 2007 by the Bush administration “would threaten the jobs of tens of thousands of American workers, exacerbating the already serious difficulties facing the U.S. auto industry and its workers and retirees,” said Ron Gettelfinger, president of the United Auto Workers union.
Gettelfinger told the Senate Commerce Committee the agreement fails to tear down South Korean regulatory barriers that have long thwarted sales of U.S. and other foreign cars, even though South Korea would be required to immediately eliminate its tariffs on U.S. cars and trucks.
John Bozzella, Chrysler’s vice president for external affairs and public policy, said the agreement “narrows, but does not eliminate discrimination against U.S. auto importers” in South Korea and rewards that country for failing to live up to previous auto trade deals.
Not everybody opposes the deal:
Myron Brilliant, president of the U.S.-Korea Business Council, said the pact does tackle many “non-tariff barriers” the U.S. auto sector has long complained about.
South Korea also pledged not to “discourage the purchase or use of U.S. goods or services — an important commitment in light of the past anti-import campaigns in Korea,” he said.
Still, it’s going to have a tough time getting through:
Senate Commerce Committee Chairman Bryon Dorgan, a North Dakota Democrat and foe of Bush administration trade deals, said lawmakers would not approve the pact in 2008.
“I believe unless it’s modified in a very substantial way it’s not going to be approved by any Congress,” Dorgan said.
If the FTA doesn’t go through, you’ll have to feel bad for President Lee, because it will essentially mean the crisis he endured over US beef will have been for nothing.
{ 8 comments… read them below or add one }
Does anyone actually believe the Korea / USA FTA will be passed this year ?
I live in Jinju. I’ve seen alot of Chevys and Chrystlers these days. There’s even a chrystler dealership here.
The Chevys are probably domestic – some of the GM/Daewoo cars come out with Chevrolet badging.
I don’t think the FTA will get passed this year, but I think the UAW is focusing on just one part of this equation. Hyundai has been building plants in the US and actually creating jobs. These jobs aren’t in Detroit, however, like most new heavy industrial plants they’re in the south. The southern US is attracting both foreign and American manufacturers because of right to work laws, preferential state tax structures, lower land costs and lower cost of living for employees.
It’s been a few years since I did this, but at the time I was shocked at the price they wanted downtown for a new 300M. Go check the price of a new Chrysler product downtown, then build the same model here:
http://www.chrysler.com/en/
http://www.dodge.com/en/
Back then it was 50% markup.
Then check downtown for the price of a new Hyundai, then build one here:
http://usa.hyundai-motor.com/
Protectionism in action.
Doesn’t seem likely to pass this year with the elections and the economic crisis taking center stage. Also, any legislation tied to the Bush administration, especially one with an economic impact that the Dems can spin as disadvantageous to the U.S., is probably toxic right now.
Why are they getting all worked up over something that is essentially dead?
Chrysler should be more worried about its survival than over something that isn’t likely to happen. The Big Three are in real trouble with the financial industry collapsing around them.
cm, I’d rather have you dead than the KOR-US FTA. You should just shut up.
michael, they’re passing the bail out of Wall Street. The plebians bought houses they couldn’t keep. Wall Street made a bet they were going to profit no matter what, selling these houses off.
It’s a Bush legislation. A legacy that will be kept on the books. We’ll see if this saved the world or not.
Meanwhile, Obama’s social programs cannot be financed even if he “quits the war”.
Interestingly, even academics dance around this, because they are so dying for “regime” change.
Only one American political party still pretends to listen to UAW-AFL-CIO. I say pretend, because the Democrats have shown they have slowly, slowyly let this giant union kick the curb, while taking campaign contributions. The party of Hoffa, the Democratic Party of America. The south doesn’t really have the ship ports or the infrastructure to best suit an auto assembly plant, but the main advantage is not being liable to pay retired people’s health plans and pensions, union scaled wages, etc.
If John McCain is President, it’s a package deal. KORUS FTA passes and so does the other deals with the other Latin Americans. Why wasn’t there giant opposition to help out Canada with NAFTA?
You stupid gyopos, vote with your head, alright?
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