June 5, 2006

Governor Says New USTR Must Start by Taking an Aggressive Stance in Korean Trade Talks Beginning Today

LANSING – In a letter to United States Trade Representative (USTR) Nominee Susan Schwab, Governor Jennifer M. Granholm today demanded the new USTR make enforcement of trade policies job number one by making trading partners play by the rules, standing up against currency manipulation, and defending intellectual property rights.

“If we are truly committed to protecting American manufacturing jobs and competing in this global marketplace, we must begin by enforcing our trade policies,” Granholm wrote.  

The Governor also commented on the U.S.-Korea Free Trade Agreement negotiations beginning today in Washington, D.C. 

“I urge this Administration to use the Korean Free Trade Agreement negotiations as an opportunity to eliminate Korea’s unfair trading practices and other non tariff barriers to ensure that American auto manufacturers have a fair opportunity to sell their products in Korea,” Granholm wrote.  “No free trade agreement should be signed unless it fulfills the President’s promise to ‘level the playing field’ and ensures truly open and immediate access to Korean consumers for our auto manufacturers.”

Korea currently stands as the United States’ seventh-largest trading partner, but has roughly 5 percent of the U.S. auto market.  The United States, the European Union and Japan share only 2 percent in Korea’s auto market.  The discrepancy in trade statistics is the result of Korean trade barriers, such as their automotive tax structure which discriminates against foreign autos.  A free trade agreement with Korea would be the most economically significant free trade pact since NAFTA. 

"The Korea Free Trade Agreement must advance and defend American manufacturing interests.  NAFTA cost the U.S. more than 1 million jobs and Michigan cannot afford to lose jobs to another NAFTA-like agreement” Granholm said.