Goods sectors identified by the USITC as benefitting most from the U.S.-Korea FTA accounted for $22.1 billion or 65% of Ohio's exports to the world in 2009. The largest of these sectors were transportation equipment ($9.9 billion in exports for 2009), machinery ($4.9 billion), metal products ($2.2 billion), electrical equipment ($1.6 billion), and plastic & rubber products ($1.4 billion).
Ohio Exports to Korea
In 2009 Korea was Ohio's 13th largest goods export market, with goods exports to Korea totaling $473 million. Of those goods exports $232 million were in sectors that the USITC identified as benefiting most from the US-Korea FTA. The largest of these sectors in Ohio were: machinery (current Korean tariffs are 7.5%), transportation equipment (3.8%), and metal products (3.8%).
Rising Discrimination against Ohio’s Exports to Korea
The tariffs on exports to Korea from the European Union, the principal competitor of the United States in world export markets, are already scheduled to fall to zero as a result of the Korea-EU free trade agreement. The result will be increasing price discrimination in the export market to Korea favoring EU over U.S. exports. A U.S.-Korea FTA would not only eliminate Korean barriers to U.S. exports, but also restore parity of treatment in the Korean market for U.S. exporters with their EU counterparts.
Manufacturing and Jobs in Ohio (2007 data)
The ITC identified manufacturing sectors that would benefit from the U.S.-Korea FTA. For those manufacturing sectors in Ohio, reported revenue totaled $181.8 billion, 61% of Ohio’s total reported manufacturing revenue of $295.9 billion. These sectors employed 496,215 people in 8,997 establishments.
Ohio’s manufacturing sectors identified by the USITC as benefitting most from the U.S.-Korea FTA had reported revenue totaling $181.8 billion, 61% of Ohio’s total reported manufacturing revenue of $295.9 billion. These sectors employed 496,215 people in 8,997 establishments.
|Manufacturing Sector||Ohio Employees (Thousands)||Ohio Establishments (Number)||Ohio Revenue (Billions $)|
|Plastic & Rubber products||74||1,041||17.4|
Sources: U.S. International Trade Commission’s “U.S.-Korea Free Trade Agreement: Potential Economy-Wide and Selected Sectoral Effects” (September 2007) and U.S. Census Bureau.