Bordallo: Guam Business Could Benefit from U.S. Free Trade Agreement With Korea

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Washington D.C. – Congresswoman Madeleine Bordallo believes that Guam could benefit from the free trade agreement with Korea that Congress approved Wednesday night in Washington.

In a release, the Congresswoman says that the U.S.-Korea Free Trade Agreement (KORUS FTA) is the most commercially significant free trade agreement since the ratification of the North American Free Trade Agreement and it is the first FTA with a North Asian partner.

Under the agreement, nearly 95 percent of bilateral trade in industrial and consumer products would become duty free within 3 years, and most remaining tariffs would be eliminated within 10 years.

The release quotes Congresswoman Bordallo as saying that  “Guam businesses will benefit from the reduction of tariffs and duties on goods traded with Korea … and allow for greater and more secure access of American businesses to the Korean market.”

READ Congresswoman Madeleine Bordallo’s release in FULL below:

Reaction to Passage of U.S.-Korea Free Trade Agreement

FOR IMMEDIATE RELEASE – October 13, 2011 – Washington, D.C. – Congresswoman Madeleine Z. Bordallo today issued the following statement regarding the passage of H.R. 3080, the United States-Korea Free Trade Agreement Implementation Act.  H.R. 3080 passed the House of Representatives by a vote of 278 yeas to 151 noes, and the Senate by a vote of 83 yeas to 15 noes.  The bill now goes to President Obama for his signature.

The U.S.-Korea Free Trade Agreement (KORUS FTA) is the United States’ most commercially significant free trade agreement since the ratification of the North American Free Trade Agreement (NAFTA) and is the first FTA with a North Asian partner. Under the KORUS FTA, nearly 95 percent of bilateral trade in industrial and consumer products would become duty free within three years, and most remaining tariffs would be eliminated within 10 years.  The elimination of tariffs alone is estimated to add between $10 billion to $11 billion to U.S. gross domestic product and create approximately 70,000 jobs nationwide.  The KORUS FTA will also provide more meaningful market access to the Korean economy in virtually all major service sectors.

“This agreement will remove trade barriers between the United States and the Republic of Korea, and it reaffirms the United States’ continued commitment to the Asia-Pacific region” said Congresswoman Bordallo.  “Guam businesses will benefit from the reduction of tariffs and duties on goods traded with Korea, and the FTA will allow for greater and more secure access of American businesses to the Korean market.  This agreement will help to stimulate the U.S. economy, create jobs, and increase the United States’ economic competitiveness in East Asia.  I look forward to it benefiting the people of Guam.”