A brief overview of the automotive clause in the KORUS-FTA and how it impacts both countries

I wrote this for the Nov. 19, 2008 edition of the Korea Herald:

The automotive clause of the Korea-United States Free Trade Agreement is but one part of a multi-faceted agreement. However, U.S. president-elect Barack Obama, along with other key U.S. lawmakers, has focused specifically on an ailing U.S. automotive industry as a crucial economic concern. Couple that with slumping demand and weak profits worldwide causing problems for Korean carmakers, and the importance of the passenger vehicle section of the KORUS-FTA becomes more pronounced.

During the first U.S. presidential debate on Sept. 27, 2008, Obama said “We have to... invest in alternative energy, solar, wind, bio diesel, making sure that we're developing the fuel-efficient cars of the future right here in the United States, in Ohio and Michigan, instead of Japan and South Korea.”

The National Assembly trade committee met on Nov. 13 to discuss the ratification of the FTA, which was first agreed upon in April 2007 under the Roh Moo-hyun administration. The committee met with intense partisan bickering, with one side suggesting a quick ratification to fend off a renegotiation demand from the coming Obama administration.

U.S. exports to Korea

As it stands now, American automobiles have been suffering from a diminished reputation in the eyes of the international community. Claims of poor fuel efficiency, lack of durability and cumbersome size have all contributed to U.S. autos’ decreased appeal worldwide. While the quality of American cars is debatable, there are legislative and economic factors at play as well.

The rest of the story.