General Benefits - Job Creation
Opening Markets, Creating Quality New Jobs
"We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we lose the chance to create jobs on our shores."
President Barack Obama
State of the Union Address
January 27, 2010
President Obama's National Export Initiative advocates doubling U.S. exports within the next five years as a method of supporting and creating two million new U.S. jobs. The KORUS FTA offers the best opportunity to jump-start this initiative by providing new export and employment opportunities for American manufacturers, farmers and service companies.
Improving and expanding the Korea-U.S. trade partnership offers an ideal opportunity for both nations to grow their economies while supporting and creating quality new jobs.
- Increasing the U.S. share of exports to Asia by 1% would create 250,000 well-paying jobs in the U.S., according to President Obama. The KORUS FTA will increase U.S. merchandise exports to Korea by as much as $11 billion according to U.S. International Trade Commission, which amounts to more than 1% of U.S. exports in 2009.
- The U.S. Department of Commerce estimates that for every $1 billion in exports, 6,250 manufacturing jobsare created and supported in the United States.
- The KORUS FTA would be a job engine for U.S. small and medium-sized enterprises - which accounted for about 30 percent of known U.S. merchandise exports between 1997 and 2007, as reported by the U.S. International Trade Commission (USITC) in a January 2010 report.
- One of the biggest beneficiaries in terms of U.S. job growth will be the American services industry, which currently employs 8 out of 10 U.S. workers. The Coalition of Service Industries reports that: "the KORUS FTA includes state-of-the-art provisions benefiting many sectors, such as insurance, where it achieves a level of openness that surpasses all prior Free Trade Agreements. The KORUS FTA is the best overall agreement to date, and therefore the necessity of its passage is even more compelling."
- Economists at the Trade Partnership Worldwide estimate that if the U.S. fails to implement the trade agreement with Korea, market share will be sacrificed to competitors, such as the EU and Canada, leading to a loss of 345,017 U.S. jobs.
- According to the U.S. Chamber of Commerce, 57 million American workers are already employed by firms that benefit from exports.
KORUS FTA - A Common Sense, Job Creating Trade Partner.