Obama announced that he hopes to address the issues currently keeping the U.S. and South Korea from forming a mutually beneficial free trade agreement before he is set to meet Myung-Bak in November for the next G20 summit in Seoul, South Korea, according to Reuters.
Following news of Obama intentions to address the free trade arrangement, Ford Motor Company released a statement suggesting their eagerness to work with Congress in order to help develop more equitable terms for the trade agreement with South Korea - a market regarded as one of the most closed markets in the world.
"Ford Motor Co. looks forward to working with the administration and Congress on an agreement that provides meaningful market access for our manufacturers, that shows rapid growth of American-made automobiles sold in Korea, and that is enforceable," said Ford in a statement.
The previous administration began talks with South Korea regarding changes to the trade arrangement, but talks were later stalled when concerns were raised regarding U.S. beef and auto exports, according to The Detroit News. the Obama administration hopes to rekindle that conversation and develop an agreement that would allow American automakers a fair chance to compete in the market.
General Motors stays quiet
GM has found itself in a unique position regarding this topic, as the American automaker currently owned Daewoo, which is based on South Korea. GM, and the rest of America's automakers, only export roughly 7,000 vehicles into South Korea each year, but Korean brands export 700,000 vehicles per year to American soil - representing a massive trade deficit for American automakers, based on information obtained by The Detroit News during an earlier interview with U.S. Trade Representative Ron Kirk.
Obama's plans for a revised trade agreement will have to reach approval from both the U.S. Congress and South Korean leadership, but if achieved, the President hopes to boost American exports by as much as $11 billion per annum.
References
1.'Obama risks democratic fight...' view
2.'Ford urges changes to Korea...' view
