Korea Auto Exports May Top U.S. Imports Under Pact, ITC Says
Automobile imports from South Korea may increase by almost $1 billion, more than three times the gain for U.S. exports, under a free-trade agreement being considered by both nations, an independent government study concluded.
Even with revisions to the vehicle provisions negotiated by President Barack Obama, imports of vehicles and auto parts from Korea would jump $907 million under the accord, and exports increase $194 million, according to the study released today by the U.S. International Trade Commission. Korea’s pledge to end regulatory barriers may add $66 million more in U.S. exports, the agency said.
Exports to Korea would expand 54 percent compared with 11 percent for shipments from Korea, reflecting an already lopsided trading relationship, reported Bloomberg. Korea sent 561,626 passenger vehicles to the U.S. last year, while U.S. carmakers shipped 13,044 vehicles, according to the agency’s report. The U.S. auto market is also almost 10 times as big as Korea’s.
Representative Dave Camp, a Michigan Republican and chairman of the House Ways and Means Committee who requested the report, said the findings underscore the need for Congress to approve the deal.
“This report shows how effective our trade agreements can be in removing both tariff and non-tariff barriers to U.S. exports,” Camp said in a statement.
The government agency, which is independent of the Obama administration, said that exemptions from Korea environmental regulations granted by the Koreans in negotiations with Obama may help increase exports from Ford Motor Co. and U.S. carmakers.
Exports and imports of autos are lower than forecast in a 2007 report, reflecting a drop in trade between the two nations following the financial crisis in late 2008. The percentage change is in the same range, the ITC report said.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →