The Cohen Group: News: Op-Eds: SOLUTIONS/FATA: What should Obama do about missile defense?


	Archives
	Op-eds

Op-eds

Korea Herald
June 27, 2010
U.S. - S. Korea Relationship - Version 3.0
By William S. Cohen

On the 60th anniversary of the Korean War’s outbreak, we reflect upon the estimated 2.5 million lives lost during the war and the strong military relationship we’ve built with South Korea since. During the subsequent Cold War, our Mutual Defense Treaty prevented further attacks from the North and formed the basis for one of our closest alliances in Asia. However, the failure of Seoul and Washington to ratify the 2007 U.S.-Korea Free Trade Agreement stands in the way of closer cooperation.

Since the Korean War, our military relationship has grown stronger. South Korea sent 50,000 soldiers to serve alongside U.S forces in the Vietnam War. More recently in Iraq, South Korea contributed the third largest number of forces (3,600) after the U.S. and U.K. To support our efforts in Afghanistan, South Korea will be sending a Provincial Reconstruction Team to Parwan Province near Kabul. Just as the Korean War memorial in Washington, D.C. honors American sons and daughters who defended “a country they never knew and a people they never met,” so too have South Koreans followed our example and assisted other countries in need.

The continued stationing of 28,500 U.S. forces in South Korea has many benefits and few costs. South Korea continues to pay for its own defense and subsidizes a substantial portion of U.S. troop expenses on the peninsula. As a hub for the largest U.S. military presence in Asia, South Korea is a close partner working with the U.S. to ensure regional security.

Our strategic relationship may be grounded in security cooperation but today’s $82 billion in bilateral trade is the most dynamic aspect of our strategic relationship. South Korea is now the world’s 14th largest economy known worldwide for its cars, electronics and shipbuilding. The Free Trade Agreement presents an opportunity for leaders in both Washington and Seoul to “upgrade” our strategic relationship and reap the benefits of a closer trade relationship.

Experts estimate that full implementation of the FTA could create up to 70,000 new jobs in the United States. This number could potentially be much higher due to new jobs generated in the agriculture and services sectors, in addition to manufacturing.

The U.S. International Trade Commission estimates that American goods exports to Korea would increase by $10-12 billion annually as a result of the FTA and that services exports would expand. While benefits are expected to accrue across sectors, U.S. agriculture (including pork and beef) and services (financial services/insurance) industries in particular stand to benefit significantly through new access to the Korean market.

U.S. consumers will enjoy access to less expensive Korean goods by the elimination of U.S. tariffs on these goods under the agreement. Almost 95 percent of tariffs on consumer and industrial goods such as Korean electronics would be eliminated within three years.

The FTA is by no means a favor to a friend. It is the product of tough U.S. negotiations to open South Korea’s market to American agriculture, consumer products and services. There is broad recognition in the U.S. Congress of the vast potential economic benefits of the FTA and its job creation potential, and concerns about the agreement focus mostly around a few issues that could be resolved in a side letter rather than holding the entire agreement hostage.

Korea has negotiated a similar FTA with the European Union to be implemented in six months and has started discussions with Canada and Mexico. If the United States does not ratify this FTA soon, American businesses could lose market share as South Korea concludes similar trade agreements with global competitors.

At a strategic level, ratification of the FTA would strengthen U.S. leadership and credibility in promoting open markets and fair competition in a region that is vital to U.S. interests. On this anniversary, we should also focus on the next chapter of our dynamic relationship, not just our heroic military ties. President Obama has declared that he wants to create jobs by exporting American products. Ratifying the FTA with South Korea will help achieve that noble goal.

William S. Cohen served as U.S. Senator and U.S. Secretary of Defense. He is currently chairman of The Cohen Group. -- Ed.

Top