(Washington D.C.)- As the March 31st deadline for notifying the U.S.-South Korea Free Trade Agreement approaches, Democratic Congressional leaders strongly urged the Bush Administration to change the course of negotiations to re-establish a bipartisan foundation for trade policy.  The Democratic Leaders are concerned that the current negotiation strategy is inadequate to tear down South Korea's "iron curtain" to American manufacturing. 

In the attached letter sent yesterday to United States Trade Representative (USTR) Susan C. Schwab, Speaker Nancy Pelosi (D-CA), Majority Leader Steny H. Hoyer (D-MD), Ways and Means Committee Chairman Charles B. Rangel (D-NY), and Trade Subcommittee Chairman Sander Levin (D-MI), expressed their disappointment over the Administration's failure to seize on the opportunity presented in the "Bi-partisan Congressional Proposal to Open Korea?s Automotive Markets."

Click here to view the bipartisan Congressional Proposal

 Text of the leadership letter sent to USTR Schwab:

March 28, 2007

The Honorable Susan C. Schwab
United States Trade Representative
Office of the U.S. Trade Representative
600 17th Street, N.W.
Washington, D.C. 20508

Dear Madam Ambassador:

We are writing, in advance of what is reported in the media to be the last round of trade negotiations with South Korea, to express our deep concern about the lack of progress on automotive sector issues, and very importantly, our belief that the proposal USTR is prepared to put forward is completely inadequate in the face of Korea's longstanding iron curtain to American manufactured products.

We simply cannot allow this one-way street with Korea to stand.  As you know, Korea is the fifth largest producer, and the ninth largest consumer automotive market in the world.  We now have an $11 billion deficit in auto trade which is 82% of the total deficit between our two countries.  Last year, Korea sold 700,000 vehicles in the U.S.; the U.S. sold only 4,000 in Korea.

We need a new approach, not more of the same written commitments that have failed to tear down the present non-tariff barriers and prevent future ones from blocking U.S. products.  We are deeply disappointed that you have failed to seize the opportunity presented by the Bi-partisan Congressional Proposal to Open Korea's Automotive Markets to take a much needed new approach to these negotiations.

These negotiations need a significant course correction.  The first goal must be to get right a basic policy that stands up for U.S. businesses and workers in the global marketplace.  We are confident that if there is a change of course in present negotiations to reach this goal we will be re-establishing a bipartisan foundation for trade.

Sincerely,

/s

Nancy Pelosi                                   Steny H. Hoyer
Speaker of the House                       House Majority Leader

Charles B. Rangel, Chairman            Sander Levin, Chairman
Committee on Ways and Means       Subcommittee on Trade,
                                                     Committee on Ways and Means

*Click here to view the letter in .pdf form.

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