Economic Impacts of the KORUS-FTA

House staff briefingRobert E. Scott, Ph.D.

Economic Policy InstituteJuly 8, 2010

Projected impacts of trade agreements

USITC projections versus actual

FTA and WTO impacts

Likely impacts of trade agreements with Colombia and Korea

Trade agreements with Columbia and Korea: Jobs impact

Total U.S. trade with Korea, 1997 - April 2010

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 YTD 2010 YTD-30

-20

-10

0

10

20

30

40

50

60

25

17

2328

22 23 2426 28

3235 35

29

813

23 24

31

4035 36 37

4644 46 48 48

39

13 14

2

-7 -8-12 -13 -13 -13

-20-16

-13 -13 -13-11

-5-1

Billi

ons

of d

olla

rs

Source: U.S. International Trade Commission and Economic Policy Institute

Trade Balance

Imports

Ex-ports

U.S.- Korea Vehicle and Parts Trade, 1997 - April 2010

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 YTD

2010 YTD

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

0.6 0.3 0.4 0.4 0.4 0.4 0.3 0.5 0.6 0.7 0.9 0.8 0.4 0.1 0.2

2.2 2.13.5

5.57.0 7.6

8.8

11.1 10.611.4 11.2

10.3

7.6

2.4 2.8

-1.6 -1.7-3.0

-5.1-6.6 -7.2

-8.5

-10.7 -10.0-10.8 -10.3

-9.6

-7.2

-2.3 -2.6

Billi

ons

of d

olla

rs

Trade balance

Im-ports

Exports

Source: U.S. International Trade Commission and Economic Policy Institute

Motor Vehicle and Parts Share of U.S. - Korea Trade balance

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 YTD 2010 YTD-100%

-50%

0%

50%

100%

150%

200%

250%

Source: U.S. International Trade Commission and Economic Policy Institute

Links

Snapshot: Free Trade Agreement with Korea will Cost U.S. Jobs. July 1, 2010.

Working paper: Trade Policy and Job Loss. February 25, 2010.

Research Assistance by Anna Turner.