The American Spectator

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Special Report

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Of course, that doesn't mean South Korea offers a particularly welcoming environment. The ROK is only America's seventh most important trading partner, perhaps a surprise given the South's economic size and the two nations' historic ties. The Korea Economic Institute observes: "Korea remains a very difficult place in which to do business. However, a series of bilateral trade consultations in 2004 and 2005 showed progress on a number of issues, and a general warming of the bilateral trade relationship has taken place over the past year."

An FTA would strengthen the position of American companies in a growing market. The two countries have concluded a bilateral review process and begun the first of two rounds of formal talks. (A related step suggested by Balbina Hwang of the Heritage Foundation would be to include the South in the U.S. Visa Waiver Program, making it easier for South Koreans to visit America. It's a politically important issue for Seoul.)

Some studies suggest that an FTA would bump up the ROK's GDP by two percent and create 100,000 jobs. Since Seoul's market traditionally has been more closed than America's, the potential economic benefits for the U.S. are relatively greater. The U.S. International Trade Commission once estimated that an FTA would result in a more than 50 percent increase in American exports to the ROK. (This is one reason opposition from South Korean farmers is likely to be particularly fierce.)

The political advantages of an FTA may be more significant, however. America's military preeminence no longer holds the allegiance even of long-time friends such as South Korea. But other ties, both cultural and economic, remain strong despite political differences. An FTA will provide a better environment for the flourishing of American "soft power."

But the administration needs to push forward. The President's authority for "fast track" negotiating authority expires next April. Winning reauthorization will be no mean feat, and creating an FTA without it will be even more difficult. The complex Korean negotiation should be completed this year.

America faces many challenges in today's world. It needs to deploy all of its means of influence, including access to the world's biggest and more efficient economies. With China on the move, no region is more important than Asia to the U.S.

topics:
Trade, Business, Environment, Military, Russia, North Korea, Energy