For more-free trade with Korea

June 10, 2011

St. Paul Pioneer-Press

The free trade movement of the last two decades has created great opportunities as well as serious challenges. But old barriers are coming down, one way or another, and the U.S. and Minnesota should welcome the U.S.-Korea Free Trade Agreement as another step down that path.

Han Duk-soo, Korea's ambassador to the U.S., visited the Twin Cities this week as part of an attempt to build public support for the agreement. He spoke to employees at Cargill, the Wayzata-based agricultural products giant, and met with leaders from General Mills, Land O'Lakes, Ecolab and Red Wing Shoes. His message is that the agreement is good for both countries but especially for the U.S., which suffers from high Korean import tariffs, and should be approved by the U.S. Congress.

"The two economies are very, very complementary,'' Han told us, arguing that the agreement could bring out the best in each nation. On the Korean side, he said, the loss of protective tariffs will lead to major economic restructuring, some of which will be unpopular. In the U.S. and Minnesota, he said, producers of agriculture and manufactured products will have easier access to Korean customers.

Han ran through a listing of blue-chip Minnesota companies, beginning with Cargill, and showed how large tariffs on selling products in Korea will be either ended at once or phased out once the agreement is ratified. He addressed concerns of automakers and workers, which led President Obama to reopen the negotiations after he took office, and caused the United Auto Workers to speak favorably of the renegotiated agreement.

U.S. Rep. Erik Paulsen, R-Eden Prairie, said he strongly supports congressional approval of the agreement because it will be a "job creator.'' Wayne Teddy, Cargill corporate vice president, said the agreement is "vital" for Cargill because of its long history of doing business in Korea. Han said such agreements help spur mutual investments in each nation as well as buying and selling of goods. He said growing Asian economies, including Korea, are negotiating similar agreements with the European Union, and that the U.S. will lag behind if it does not finalize the Korean agreement.

The spread of marketplace capitalism via freer trade is making its mark on history. "Educate and compete" has been our mantra for Minnesota, and we view the free-trade movement as a rules change that eventually will make global competition easier. The U.S. is right to negotiate hard and to bring its values to the table. It did so in this agreement. Korea is our ally and trading partner, and we should cement our longstanding friendship by approving the Korea-U.S. Free Trade agreement.

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