KORUS free trade agreement: opening possibilities for increased exports.

• Author: Kalytiak, Tracy
• Position: Special section: WORLD TRADE CENTER ALASKA 25th Anniversary

Alaska and South Korea for years have nurtured a fruitful climate for business, with the East Asian nation growing to become the state's third-largest trading partner. Now that South Korea and the United States have forged a flee-trade agreement that eliminates most tariffs on agricultural and other goods between the two countries, their $90 billion relationship will become even more productive--it is expected to grow another 10 percent within five years. The agreement is expected to boost export opportunities for Alaskans.

U.S. Sen. Mark Begich lauded the so-called KORUS agreement, saying, "South Korea is a customer of many Alaska goods, including seafood, timber, oil and gas, and minerals. From 2007-2009, Alaska exported a yearly average of $509 million to South Korea. The South Korea Free Trade Agreement will eliminate duties on crucial exports such as liquefied propane, liquefied natural gas and most agricultural products, boosting Alaska's exports."

Other flee-trade agreements had been negotiated, between the U.S. and the South American nations of Colombia and Panama, and President Barack Obama in October signed into law legislation establishing those agreements. Begich says he viewed those agreements differently than the one established with South Korea.

"I opposed the free trade agreements with Colombia and Panama," Begich said. "I believe all trade agreements should include fully enforceable consumer, labor, environmental and human rights protections. I gave these proposals careful and thoughtful consideration. I even met personally with the Ambassador of Colombia to discuss this proposal. Ultimately, because they did not contain strong enough protections for American jobs and labor standards, I voted against these agreements."

The South Korea-U.S. agreement, Begich said, proved to be different because of the longstanding close ties between South Korea and Alaska.

"Alaska was one of the first states to establish a trade office in Korea," Begich said. "As mayor of Anchorage, I visited our sister city of Incheon to advance business and cultural ties and I hosted the Incheon mayor to Anchorage. As a U.S. senator, I have met with the Korean president and ambassador to the U.S. Alaska is proud to call about 10,000 Korean-Americans residents of our state."

INCREASED EXPORTS

Alaska exports to Korea totaled $576.4 million for the first 10 months of 2011, up 29.6 percent from $444.7 million for the same period of 2010. Exports of all major...