Shippers and carriers praise US-South Korea free trade deal

THE American shipping community - and its customers - praised the US and South Korean governments for reaching consensus on a new free trade deal, and said they look forward to enjoying its benefits once ratified.

"South Korea has the 14th largest economy in the world and the increase in trade that will come from this means more jobs, more global competitiveness and an anchor for US economic engagement in Asia," said UPS chairman and CEO Scott Davis.


The US-South Korea Free Trade Agreement contains provisions to enhance market access and improved customs clearance for companies such as UPS, reported London`s Containerisation International.


Said National Foreign Trade Council vice president Chuck Dittrich: "The reduction and elimination of tariff and non-tariff barriers will provide greater market access for a wide range of US companies, service providers and agricultural producers - helping to increase US exports and economic growth."


The White House said the deal would increase annual exports by as much as US$11 billion and support 70,000 domestic jobs. An original trade pact between the two countries has stalled for almost three-and-a-half years in the face of opposition in Congress over what was perceived as inadequate market access for US auto manufacturers and beef producers.


The deal opens markets to US carmakers by harmonising safety and environmental standards that have stood as barriers to trade. It also opens Korea`s $560 billion services market in areas such as financial services, energy and distribution.