Part 3 features recent news from the Department of Commerce, including a report from the Census Bureau on the growth of Asian-American-owned business and updates from Secretary Gary Locke's trip to South Korea last week.
Promoting the U.S.-South Korea Free Trade Agreement, Secretary Locke writes:
As soon as the Korea deal comes into effect, tariffs and other measures that restrict American producers’ access to this market will begin to fall.
U.S. businesses, workers, and farmers will be selling more auto parts, crops and countless other goods to the 12th largest economy in the world – and that can add critical fuel to our economic recovery.
Under the U.S.-Korea trade pact:
• Two out of every three dollars in U.S. agricultural export sales to South Korea will become duty free immediately;
•Over 95 percent of bilateral trade in consumer and industrial products with South Korea would become duty free within five years, and most remaining tariffs would be eliminated within 10 years; and
•South Korea’s $580 billion services market would be opened to American companies in sectors ranging from delivery and telecommunications services to education and health care services.
This deal also includes strong environmental and labor standards that will benefit workers in America as well as Korea.
The United States drove a tough bargain and got a great deal for American businesses and workers. And that is critically important for our economy.
America’s capacity to create jobs here at home will depend heavily on our ability to sell American goods and services – the best in the world – to the 95 percent of consumers who live outside our borders.
Department of Commerce, May 3, 2011:
According to the Commerce Department's Census Bureau, the Number of Asian-Owned Businesses Increased at More Than Twice the National Rate
In honor of Asian/Pacific American Heritage Month, the U.S. Department of Commerce's Census Bureau has released highlights of the latest data on our nation's Asian, Native Hawaiian and Other Pacific Islander populations from the 2010 Census and 2007 Survey of Business Owners.
Some of the latest statistics show:
•There are 17.3 million U.S. residents of Asian descent, according to the 2010 Census, making up 5.6 percent of the total population.
•Native Hawaiian and Other Pacific Islanders make up 0.4 percent of the population, totaling 1.2 million people, according to the 2010 Census.
•Between the 2000 and 2010 Censuses, the Asian alone or in combination population grew 46 % – more than any other major race group.
•The Native Hawaiian and Other Pacific Islander alone or in combination population grew by 40 % between the 2000 and 2010 Censuses.
•Fifty percent of single-race Asians 25 and older had a bachelor’s degree or higher level of education in 2009, compared with 28 percent for all Americans 25 and older.
•Fourteen percent of single-race Native Hawaiians and Other Pacific Islanders 25 and older had at least a bachelor’s degree in 2009.
•U.S. businesses owned by people of Asian origin increased 40.4 percent to 1.5 million between 2002 and 2007, increasing at more than twice the national rate.
•Native Hawaiian- and Other Pacific Islander-owned businesses grew by 30.6 percent from 2002 to 2007, totaling 37,809 businesses.
Find out more about the Asian and Native Hawaiian and Other Pacific Islander communities in the United States with Census's Facts for Features Asian/Pacific American Heritage Month. For business information specific to these communities, visit Census's Press Release on Asian-Owned Businesses.
Department of Commerce, April 29, 2011:
Varian Medical Systems Could Save More Lives and Compete More Efficiently Under U.S.-Korea Trade Agreement
Guest blog post by Timothy E. Guertin, President and CEO of Varian Medical Systems of Palo Alto, CA
Editor’s Note: Varian Medical Systems focuses energy on saving lives. By partnering with customers and others, the people of Varian develop leading solutions for improving cancer treatment, X-ray imaging, and security.
Varian Medical Systems is honored that Secretary Locke and an esteemed Congressional delegation devoted time to seeing our systems treating cancer patients at Seoul National University Hospital (SNUH), while on a trade mission to the Republic of Korea. SNUH, a longtime partner of Varian, provides some of the most leading edge cancer treatments available to those stricken with this terrible disease. The Varian linear accelerators that perform radiotherapy treatments at SNUH were manufactured in California and then installed and serviced by a team of technicians in Seoul, providing jobs on both sides of the Pacific.
While visiting the radiation oncology department at SNUH, Secretary Locke was able to see firsthand the easy and painless process a cancer patient goes through when being treated with radiotherapy. Radiotherapy is a non-invasive technique that targets tumors with high-energy photon beams that stop cancer cells from reproducing. Treatments on Varian linear accelerators are tailored for each patient, focusing on breast, prostate, brain, lung and other types of cancers. In the next several months, SNUH will be acquiring the new Varian TrueBeam system that will enable clinicians in Seoul to treat more complex cases, while at the same time reducing treatment times for patients.
We are able to place Varian technology in the hands of oncologists in Seoul thanks to the existing beneficial trade relationship between the U.S. and Korea. However, this relationship would be further strengthened if the pending US-Korea Trade Agreement was ratified, thereby eliminating the existing tariff barriers that are currently in place for technology like ours. Should the trade agreement be finalized, it would eliminate an 8 percent tariff for Varian and potentially lead to business growth in both the U.S. and Korea. In addition, it would help to make the most advanced cancer treatment in the world available to more patients in Korea.
It is my hope that patients in Korea and all over the world will continue to benefit from the collaborative innovation that occurs due to mutually beneficial trade relationships. In order to continue to innovate new ways to treat cancer and other diseases, we need to ensure that we can keep working together around a common goal.
Bloomberg, April 28, 2011:
Locke Says U.S. Must `Fight' for China Market Access
U.S. Commerce Secretary Gary Locke talks with Bloomberg's Stephen Engle about the need to press China to ensure its industrial policy doesn't unfairly limit market access to American companies. Locke also discusses the outlook for a free-trade agreement with South Korea and his nomination to be the next U.S. ambassador to China. They speak in Gimpo, South Korea.
Video link
Department of Commerce, April 28, 2011:
Trading with South Korea
Guest blog post from Congressman Jim McDermott, who is the Ranking Member of the Subcommittee on Trade, and represents the city of Seattle, WA in the U.S. House of Representatives. He wrote this post while on the CODEL trip to Korea with Secretary Locke.
The U.S.-South Korea Trade Agreement is something that is good for both countries. For South Korea, this is an opportunity to solidify their position as a world economic power by establishing a relationship with the United States. They are in a situation where they are surrounded by China, North Korea and Japan. They are a group of 50 million people who since the Korean War have gone from absolute devastation to a solid economic performer – a country that can deal with the United States on an equal basis.
When we began trading with an impoverished South Korea, we opened our doors and lowered our tariffs to the point where they paid almost nothing to export to the United States. Simultaneously, we paid enormous tariffs when we exported to South Korea – tariffs that are still in effect.
I’ll give you an example: a bottle of wine that would cost $13 in Seattle would cost $68 here in Seoul because of the tariffs. With the new trade agreement, those tariffs will come down and we will have Washington State wine sold here in Korea. Instead of drinking French, Italian, Spanish and Argentinean wines, they will be drinking Washington wine. That’s just one example of how we stand to benefit from an economic standpoint.
The other side of it is emotional. Koreans feel a great gratitude toward the United States because of the Korean War, and they want to be in a permanent, special relationship with us. They want to be our partners, and they have demonstrated over and over in the diplomatic world that they support the United States. To deny them this is to say all that other stuff doesn’t mean anything – it would be us saying you can go to the European Union and trade with them exclusively.
On Friday, South Korea is slated to sign a free trade agreement with the EU that will begin on July 1. New long-term contracts will start to be signed by Korean companies with EU companies if they have no alternative and competition from the United States because we didn’t pass the U.S.-South Korea Trade Agreement. South Korea is moving forward, but they want to be our partner, and they have done everything to earn it. They renegotiated the trade agreement and did so in spite of political opposition in their country. They have excellent labor and environmental standards. They have done everything one could expect.
On our side, it is important we begin to establish trade agreements with other countries in the Asia-Pacific region to allow states like Washington to create export-related jobs.
Department of Commerce, April 28, 2011:
Secretary Locke and Members of Congress Tour Pantech and Meet with U.S. Businesses in Korea
On the second day of the CODEL trip to Korea, Secretary Locke and the congressional delegation visited Pantech, one of the largest mobile phone makers in South Korea, to see firsthand how the U.S.-South Korea Trade Agreement will help American and South Korean businesses and workers in today’s global manufacturing and supply chain.
Currently, Pantech imports about half a billion dollars worth of U.S. products annually, including chipsets from Qualcomm (San Diego, Calif.) and Gorilla Glass from Corning Inc. (Corning, New York). Gorilla Glass is manufactured in Harrodsburg, Kentucky and is exported around the world for use in smart phones, tablets and other mobile devices and has applications across a large range of industries. In addition, nearly 60 percent of Pantech’s production equipment is made by U.S. companies.
With the approval and implementation of the U.S.-South Korea agreement, Pantech is expected to quadruple its purchase of U.S. products by 2015, while Corning will see existing tariffs on Gorilla Glass eliminated immediately upon implementation of the agreement. Corning, utilizing these benefits, will gain market share in South Korea’s growing mobile-device market by enhancing its competitiveness vis-à-vis other manufacturers in the region. Corning is also investing $180 million to expand its factory in Harrodsburg in order to meet the growing demands of its customers in Asia, including South Korea. Earlier in the day, Locke met with his South Korean counterpart, the Minister of Knowledge Economy Choi Joong-Kyung, to discuss KORUS and the cooperative relationship between the U.S. Department of Commerce and the Ministry of Knowledge Economy.
At a luncheon hosted by the American Chamber of Commerce in South Korea that followed, Locke delivered the keynote address, stressing the importance and benefits of growing U.S.-South Korea commercial relations through the U.S.-South Korea Trade Agreement (KORUS). Locke is in South Korea leading a bipartisan congressional delegation to demonstrate firsthand how this agreement will support job creation at home and spur economic growth in both the U.S. and South Korea.
“This trade agreement is going to help move forward significant national priorities for America and South Korea, while spurring economic growth and job creation in both countries,” Locke said. “For the United States, implementation of the agreement will help create a level playing field for U.S. businesses and workers, and help increase exports. For South Korea, this is an opportunity to secure preferential access to the U.S. market, lock in this access, and provide its companies with an edge over global competitors.”
Tomorrow, Locke and the delegation will visit the Demilitarized Zone -- the border between South Korea and North Korea. They will also have lunch with U.S. troops and their families, as well as the United Nations Command. The group will also meet with leaders of South Korea’s Democratic Party and Grand National Party, as well as the National Assembly Committee on Unification, Foreign Affairs, and Trade.
See text of Secretary Locke’s remarks, guest blog post by Amy Jackson, President of the American Chamber of Commerce in Korea, and updated photos from (the day's)events.
Department of Commerce, April 26, 2011:
Secretary Locke Kicks Off CODEL to Korea
Guest blog post by Secretary of Commerce Gary Locke
This week, I’m visiting the Republic of Korea, one of the United States’ closest allies in the world, and one of our most important trading partners. Last December, President Obama signed a landmark trade deal with Korea that could boost annual exports of American goods to Korea by up to $11 billion, supporting at least 70,000 U.S. jobs.
But the deal still needs to pass Congress, which is why this week, I’m leading four Members of Congress on a fact-finding mission that will demonstrate firsthand how this trade deal will lead directly to more sales of American goods and services abroad and more American jobs here at home.
Korean and U.S. businesses are already collaborating, innovating and trading together like never before. This week, members of our bipartisan delegation – which includes Representatives Dave Reichert and Jim McDermott from my home state of Washington and Representatives Joseph Crowley and Charles Rangel from New York – are getting to see this up close.
Tomorrow, we visit Pantech, one of Korea’s largest mobile phone makers, and a major buyer of U.S. technology. More than 60 percent of the production equipment at Pantech is made by U.S. companies, and you’ll find plenty of American-made components in their phones, like scratch resistant Gorilla Glass from Corning and microchips from Qualcomm.
And on Friday, we’re going to Seoul National University Hospital to see a demonstration of Varian Medical Systems’ advanced radiotherapy technology.
This equipment is manufactured in California and sold globally, and it’s helping Korean and American doctors fight cancer and save lives.
Both of these relationships – between Varian and Seoul Hospital and between Pantech and its American partners -- are going to be strengthened by the U.S.-Korea trade deal that reduces and eliminates tariffs and makes regulations and approval processes:
•Faster;
•More transparent; and
•More predictable.
As soon as the Korea deal comes into effect, tariffs and other measures that restrict American producers’ access to this market will begin to fall.
U.S. businesses, workers, and farmers will be selling more auto parts, crops and countless other goods to the 12th largest economy in the world – and that can add critical fuel to our economic recovery.
Under the U.S.-Korea trade pact:
• Two out of every three dollars in U.S. agricultural export sales to South Korea will become duty free immediately;
•Over 95 percent of bilateral trade in consumer and industrial products with South Korea would become duty free within five years, and most remaining tariffs would be eliminated within 10 years; and
•South Korea’s $580 billion services market would be opened to American companies in sectors ranging from delivery and telecommunications services to education and health care services.
This deal also includes strong environmental and labor standards that will benefit workers in America as well as Korea.
The United States drove a tough bargain and got a great deal for American businesses and workers. And that is critically important for our economy.
America’s capacity to create jobs here at home will depend heavily on our ability to sell American goods and services – the best in the world – to the 95 percent of consumers who live outside our borders.
The U.S.-Korea trade deal is a big step in the right direction and I’m excited to see what the rest of this week holds for our delegation.