Obama: S. Korean trade deal will help U.S. economy!

Wow, this new free trade deal with South Korea sounds like it could help out the U.S. a great deal! It would boost our economy and create more jobs…however, it has to get passed by Congress first. Read the full story after the jump!!
@wendyKlucas

(MSNBC) — President Barack Obama says the newly sealed free trade deal with South Korea is a big victory for American farmers and ranchers, the aerospace and electronics industries, and U.S. automakers.

The agreement, which requires congressional approval, is intended to help open the growing South Korean market to more American goods.

After a week of marathon negotiations, representatives from both countries broke through a stalemate Friday on outstanding issues related to the automobile industry, which have been a sticking point in the talks.

The agreement would be the largest U.S. trade deal since the 1994 North American Free Trade Agreement with Canada and Mexico, and would bolster U.S. economic ties with South Korea, the world’s 15th largest economy. The deal is often referred to as NAFTA.

The president said the pact also further cements the strong alliance between Washington and Seoul, particularly at a time of heightened tension on the Korean peninsula. He said the agreement shows the alliance is stronger than ever — at a time of unprovoked attacks by North Korea on the South.

Obama said that with the latest jobs report showing disappointing results, this trade deal will help create jobs and aid the U.S. economy.

South Korea is agreeing to allow the U.S. to lift a 2.5 percent tariff on Korean cars in five years, instead of cutting the tariff immediately. The agreement also allows each U.S. automaker to export 25,000 cars to South Korea as long as they meet U.S. federal safety standards, and it allows the U.S. to continue a 25 percent tariff on trucks for eight years before phasing it out by the 10th year. South Korea would be required to eliminate its 10 percent tariff on U.S. trucks immediately.

South Korean President Lee Myung-bak praised the deal as bringing huge economic benefits to both countries and further boosting the two nations’ alliance.

“This agreement is meaningful in that it has laid the basis for a mutual win-win by reflecting interests for the two countries in a balanced manner,” Lee said in a statement posted on the presidential website.

The White House had hoped to strike a deal last month during Obama’s trip to Seoul for the G-20 economic summit, but both countries were unable to broker a compromise on issues pertaining to trade of autos and beef. U.S. Trade Representative Ron Kirk and his counterpart, Korean Trade Minister Kim Jong-hoon, resumed negotiations outside Washington this week. The agreement did not address issues with the beef trade. The U.S. had sought greater access to the beef market in South Korea, which restricts imports of older U.S. meat. A senior administration official said discussions on beef are ongoing. The official insisted on anonymity to discuss private negotiations. The wider agreement would eliminate tariffs on more than 95 percent of industrial and consumer goods within five years, a move that the U.S. International Trade Commission estimated would increase exports of U.S. goods by at least $10 billion. The deal would also open up South Korea’s vast $560 billion services markets to U.S. companies.

The agreement must still be ratified by lawmakers in both countries. Administration officials offered no timeline for ratification on Capitol Hill.

Senate Minority Leader Mitch McConnell said the agreement was, “a positive development” toward promoting economic growth and private sector job creation. Rep. Eric Cantor, R-Va., said the agreement would make U.S. exports more competitive and create more opportunities for American companies to create jobs.

The South Korea deal has been widely supported by those in the private sector and the Chamber of Commerce, which has criticized other administration policies as antibusiness.

“This agreement will create thousands of new jobs, advance our national goal of doubling exports in five years, and demonstrate that America is once again ready to lead on trade,” Chamber president Tom Donohue said Friday.

Ford Motor Co. CEO Alan Mulally said the deal would give the automaker “greater confidence that we will be able to better serve our Korean customers.”