Buy an American car in South Korea and get a free tax audit

[NNN0LHI]

http://economyincrisis.org/content/ford-comes-out-swinging-against-fta-south-korea

<snip>The South Korean government uses a whole host of non-tariff barriers to keep foreign-made vehicles out of the market. South Korea uses efficiency standards, high taxes, restricted advertising hours and the assurance of an income tax audit to discourage the purchase of American-made automobiles.

Those tools have been extremely effective. In 2009, the U.S. exported just 5,878 autos to South Korea. South Korea, on the other hand, exported 476,833 autos to the U.S.

Korea has what Ford describes as “one of the most closed automotive markets in the world.” Imports make up just six percent of the market, the lowest foreign market share of all Organization for Economic Development and Cooperation nations.

Even if the terms of the agreement were renegotiated, it would be up to South Korea to hold up its end of the bargain, which hasn’t always been the case with the Asian nation. In the 1990s, the U.S. and South Korea negotiated two auto-specific agreements that removed some of the most overt non-tariff barriers, South Korean officials just replaced them with less overt barriers.

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I don't the think South Koreans are going to be purchasing many US made cars.

[DJ13]

1. Lets hear it for Free Trade!

[hifiguy]

2. The Koreans, unlike the US

appreciate the value of securing its industrial base.

"Free Trade" translates as deindustrialization of the US to third world status.

edit for grammar brain fart

[NNN0LHI]

4. That is why they aren't so interested in sending their young men and women off to die in stupid wars

Americans? Not so smart.

Don

[rpannier]

3. Before we start lambasting South Korea. The other end of this agreement

-It has been confirmed that the legal status of the agreement is different in the implementation legislation currently under review by the U.S. Congress. Whereas South Korea has given the agreement precedence over all current domestic laws, the U.S. plans to assign it status below not only federal law but also state law. (This would apply to labor and environmental laws)

- A South Korean investor might be subject to restrictions according to U.S. federal or state law, it would be a violation of the agreement to punish a U.S. investor according to South Korean law.

- More than thirty domestic laws conflict with the agreement and those laws would be null under the free trade agreement without any discussion.

[denverbill]

5. I don't see any problem with them using efficiency standards.

I'm not sure what the 'high taxes' and 'restricted advertising hours' is all about. If they mean only 'high taxes' and 'restricted advertising hours' for American cars, that's essentially a tariff and should be illegal.

I am pretty tired of Americans getting screwed by these trade agreements though.

[msongs]

6. we should apply THEIR rules and standards to cars brought here from Korea Inc nt