Obama/GOP "free trade" pact with S. Korea expected to severly damage US's textile industry

[brentspeak]

http://www.startribune.com/business/134143553.html

U.S. industrial textiles industry sees a threat in Korea trade pact
Article by: SUSAN FEYDER , Star Tribune
Updated: November 19, 2011 - 10:02 PM

America's $29 billion specialty fabric business soon could lose jobs to companies in South Korea, an exec fears.

Unlike apparel textiles, the U.S. specialty fabric business has continued to grow, but according to industry trade associations it may now be threatened by the new Korea-U.S. free trade agreement (KORUS).

The U.S. International Trade Commission, a bipartisan federal agency, estimates KORUS will lead to increased U.S. textile exports to South Korea. The Industrial Fabrics Association International (IFAI) takes a different view, noting that under the agreement recently approved by Congress, goods from South Korea would enjoy duty-free entry into the U.S., while U.S. exports to Korea would be subject to a 10 percent value added tax (VAT). The measure also would allow South Korea to raise its VAT rate above 10 percent.

Ruth Stephens, executive director of the U.S. Industrial Fabrics Institute (USIFI), says U.S. negotiators erred because KORUS places domestic companies at a competitive disadvantage. USIFI is part of IFAI , a Roseville-based trade group with more than 1,800 member companies.

snip

Q Why is KORUS such bad news for your industry?

A It's a lesson in how the U.S. has done free trade agreements since World War II. The U.S. was sort of the big brother helping other countries get back on their feet after the war. Almost every trade agreement we've done since then uses that philosophy. Unfortunately with South Korea, you're now dealing with a country that's a very sophisticated textile producer, one that is not in need of U.S. support. In 2010 we had a trade deficit of more than $700,000 with South Korea in textiles.

http://www.bizjournals.com/charlotte/print-edition/2011/11/25/top-execs-on-key-issues-in-the-news.html

How will recent trade pacts affect the Charlotte region's textile industry?

Jean Lineberger
General manager, Brawer Technical Yarns; board member, U.S. Industrial Fabrics Institute

What’s your concern with the Korean pact?

It will inflict swift and lasting damage in American textiles and apparel. The reason is 86% of those lines become duty-free on Day One of implementation, and another 10% fall under a five-year phase-out. This is the first time an administration has allowed a large number of sensitive products from a country with a sophisticated textile industry to receive immediate access to the U.S. market.

Are there ways to address the issue?

Our focus will be on ensuring U.S. Customs stays on top of this situation, but their limited resources will leave the floodgates open to our markets.

Will the pact boost American exports?

Absolutely not.

http://english.yonhapnews.co.kr/business/2011/11/25/47/0501000000AEN20111125001900320F.HTML

KORUS FTA to bolster S. Korea's textile industry
2011/11/25 10:34 KST

SEOUL, Nov. 25 (Yonhap) -- The free trade pact with the United States is expected to bolster South Korea's textile sector, which has started to regain its past glory by producing hightech, value-added materials, industry sources said Friday.

snip

Reflecting this, the Korea International Trade Association (KITA) said the country's textile exports are expected to reach US$15.9 billion this year, the highest since the $16.1 billion figure tallied in 2001. Textile exports started to recover from 2009 onwards.

Both KOFOTI and KITA said the free trade agreement (FTA) with Washington will be a boon to local companies.

[tblue]

1. This is why Obama will win reelection.

He will not disappoint the oligarchy. In the end, he's their guy.

[Laelth]

2. Several DU denizens advised me that this deal was better than the status quo.

Al Franken voted for it, after all. I was astounded by that. They explained that Franken "could read," and that's why he supported the deal with South Korea.

Where, I ask, are they now? I need Obama's stalwart defenders to explain to me how this is a "good deal" for th average American.

-Laelth

[izquierdista]

3. We still have a textile industry?

Who knew? :shrug: All the mills around here closed up long ago.

[KoKo]

4. This is SOOO COOL! Thanks for this Post...It shows how wonderful our President is on Trade Deals!

He's Bringing Jobs Back to America after that Fucking Bush sent them all away. Thank GOD/GODDESS we managed to get Obama elected!

He is BRINGING BACK FREE TRADE to AMERICA. We should all be "down on our knees" thankful to this man who is working 24/7 days a WEEK FOR US...FOR AMERICAN CITIZENS.

He really "GET's IT!" He sees our suffering and pain and is working so hard against those Repug Crazies that his HAIR IS GOING WHITE!

His suffering is incredible! We need to support this man...because his suffering is the suffering we share with him...his body, his soul. President Obama NEEDS OUR STRENGTH TO KEEP GOING! The toll on his body and appearance shows the terrible suffering. We cannot allow him to suffer these RW ATTACKS that Go ON AND ON AND ON!

President OBAMA IS THE ONE! (The MAN OF THE PEOPLE!) He knows, absolutely, where this Nation needs to go.

WE MUST NOT ALLOW THE RIGHT WING CRAZIES TO CONTINUE THIS ONSLAUGHT AGAINST HIM!

K&R for OBAMA...

[ProSense]

5. From the first link:

QIf it's such a bad idea, why did Congress approve it?

ATrade agreements aren't about trade. They're about politics and power struggles. Right next to South Korea is North Korea. I believe that had a big influence on the timing of the passage (because the U.S. wants to keep South Korea as an ally).

Another reason is that the portions of this agreement that deal with agriculture and the automotive products will result in job creation opportunities in the U.S. Washington is all about jobs right now. The government's analysis of the trade agreement found there should be export opportunities in agriculture and automotive sectors while several market segments could be hurt, including textiles.

Everyone in Washington should be about jobs, but the Republicans are busy.

[ellisonz]

6. ...

The agreement also allows the textile industry to ask the government to reinstate tariffs if South Korean imports are flooding the market and hurting domestic producers.

“Textiles is a sensitive industry for the United States, and this agreement contains key provisions on tariffs and in other areas that can help keep America’s textile industry competitive,” said Carol J. Guthrie, a spokeswoman for the Office of the United States Trade Representative. “We realize that just opening markets for our textiles and apparel exporters is not enough, so the export opportunities in this agreement go hand in hand with strong rules of origin and strong textiles enforcement mechanisms.”

http://www.nytimes.com/2011/10/12/business/global/foes-of-south-korea-free-trade-deal-struggle-to-be-heard.html?pagewanted=all