UPS and FedEx both applauded the Obama administration for reaching agreement on a new bilateral free trade agreement with South Korea. The administration last week announced resolution of issues regarding trade in beef and automobiles that posed obstacles to final ratification. President Obama has been working to end a three-year impasse on the trade agreement, viewing it as an important step in his administration’s initiative to double American exports over the next five years.
“South Korea has the 14th largest economy in the world, and the increase in trade that will come from this agreement means more jobs, more global competitiveness and an anchor for U.S. economic engagement in Asia,” says Scott Davis, UPS chairman and chief executive officer and a member of the President’s Export Council. “South Korea is our seventh largest trading partner, and we need to protect and expand that relationship. I’m also hopeful now that we can turn immediately to completion of other pending trade agreements.”
The U.S.-South Korea Free Trade Agreement contains provisions for the express delivery industry, including enhanced market access and improved customs clearance times. “The agreement will create good-paying jobs and economic growth in the United States by generating new business opportunities in one of the most dynamic economies in the world,” says Michael Ducker, FedEx executive vice president. “We urge the president to send the agreement to Congress for a prompt vote to strengthen the U.S. economic recovery and to help achieve the administration’s goal of doubling exports in five years.”