General Discussion

Omaha Steve

(99,653 posts) Sun May 12, 2013, 02:30 PM May 2013

UNDERREPORTED: Korean FTA Has Already Resulted in 10% Decline in Exports, 37% Trade Deficit Increase

http://wepartypatriots.com/wp/2013/05/10/underreported-korean-fta-has-already-resulted-in-10-decline-in-exports-37-trade-deficit-boost/

NOTE: NOT TO SCALE (Our puzzle piece should be much smaller)

Under the Obama Administration, the United States has entered into free trade agreements (FTAs) with Korea, Colombia, and Panama. As to why these agreements were necessary, President Obama promised “greater U.S. access to the Korean auto market, significantly increased labor rights and worker protections in Colombia, and enhanced tax transparency and labor rights in Panama.”

Now, as the Obama administration secretely orchestrates the Trans Pacific Partnership (TPP), an FTA with broad, harmful, and global ramifications, critics are pointing to the underreported failures of our existing FTAs as a warning sign.

A year into the Korean FTA U.S. goods exports to the Asian ally have declined by 10 percent, a decrease of $4.2 billion. The agriculture and the auto industries have been hardest hit with exports dropping sharply. Wasn’t the auto market the big sell on this thing?

Overall, the U.S. trade deficit with Korea has grown by 37 percent since the FTA was put into motion. Here are other disheartening facts according to Public Citizen:

FULL story and video at link.

About the Author: Chaz Bolte

Chaz Bolte is a native of Pittsburgh, PA where he attended Slippery Rock University. He currently contributes to WePartyPatriots, Addicting Info, Secret Party Room, and Football Nation. You can follow him on Twitter @ChazBolte

4 replies

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UNDERREPORTED: Korean FTA Has Already Resulted in 10% Decline in Exports, 37% Trade Deficit Increase (Original Post) Omaha Steve May 2013 OP

I don't know much about the subject...but there may not be a causal link between the FTA and exports wercal May 2013 #1

Meanwhile, the trade deficit with china hit a 3-year low bhikkhu May 2013 #2

In 2011 and 2012 US trade balance was better with FTA countries than all others. pampango May 2013 #3

Imagine! A member of Congress who gets math. Unheard of. JDPriestly May 2013 #4

wercal

(1,370 posts)

1. I don't know much about the subject...but there may not be a causal link between the FTA and exports

Reply to Omaha Steve (Original post)

Sun May 12, 2013, 02:44 PM

May 2013

If the bulk of the drop was agriculture and cars....well, I know our agriculture exports dropped last year, due to our own drought. Korea may have wanted to import more, but we didn't have it to sell.

Automobiles - I looked it up:

In a Huffington post article from 2 days ago, our exports to Korea of autos is UP. Not down. Our auto trade deficit is up...but that's not because Korean markets are closing for us...its because more Americans are buying Korean cars. But, its even more complicated than that. The cars are assembled in Montgomery, Alabama (Hyundai)...but the parts are made in Korea and count towards our auto trade deficit with them. Its hard to know if this is good news or bad news. Bottom line is Hyundai is getting more popular.

Anyway, I haven't dug deep into the subject, but I'm not sure there is a causality there.

bhikkhu

(10,718 posts)

2. Meanwhile, the trade deficit with china hit a 3-year low

Reply to Omaha Steve (Original post)

Sun May 12, 2013, 02:54 PM

May 2013

Perhaps the increases in Korea are more than offset by the declines in China? Which would mean that the trade agreement benefits our strong alliance with a progressive partner, while decreasing dependence on a problematic trade partner.

Overall, considering a global climate trending toward slow growth or recession, the US is doing much better than most. And South Korea, and trade with South Korea, is very far from being the problem.

(Xenophobia is the fear that we might be treated by foreigners like we treat foreigners?)

pampango

(24,692 posts)

3. In 2011 and 2012 US trade balance was better with FTA countries than all others.

Reply to Omaha Steve (Original post)

Sun May 12, 2013, 04:27 PM

May 2013

One year's data with one country is less significant.

JDPriestly

(57,936 posts)

4. Imagine! A member of Congress who gets math. Unheard of.

Reply to Omaha Steve (Original post)

Sun May 12, 2013, 04:55 PM

May 2013

Most of them only understand how to blow hot air.

Elizabeth Warren is the best.

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