North Korea's recent attack on South Korea inspired further work on the three-year old trade talks between South Korea and the United States. The free trade deal has been modified to incorporate certain provisions that were not included in the original pact in 2007 (Wolf). These changes improve the chances for the pact to receive legislative ratification. On November 11, attempts to modify the agreement failed because President Barack Obama was at an economic nations summit in Seoul (Ramstad).
The free trade deal includes provisions on auto imports, exports and tariffs, the major stumbling blocks from previous negotiations that prevented the president from signing a revised treaty earlier. The agreement requires South Korea to cut its 8% tariff on U.S. automobiles in half and eliminate it in five years. The U.S. would be allowed to keep its 2.5% tariff on South Korean automobiles during the five year period. Historically, the imbalance of exports and imports in the automobile industry was so severe that it accounted for three-fourths of the $10.6 billion U.S. trade deficit with South Korea. Furthermore, the White House is hopeful that the new provisions will create tens of thousands of new jobs in struggling auto and auto parts industries and up to $11 billion in new exports. Without the provisions, 345,000 American workers could be laid off, according to the U.S. Chamber of Commerce. Thomas Donohue, president of the Chamber of Commerce, said, "This agreement will create thousands of new jobs, advance our national goal of doubling exports in five years, and demonstrate that America is once again ready to lead on trade. The administration has done its part. Now it's time for the new Congress to make passage .
