Readout of the President's Call with President Lee of Korea

The President spoke by phone this afternoon with Korean President Lee Myung-bak of Korea to welcome the entry into force of the U.S.-Korea Free Trade Agreement (KORUS) at midnight on March 15 in both countries. The President noted that the agreement will begin boosting exports and creating jobs and growth immediately. The President thanked President Lee for Korea's close cooperation in getting the agreement implemented, and noted this is a strong example of the accomplishments achieved in the U.S.-Korea partnership. The two countries have made great strides in modernizing our alliance to promote security in the region and in promoting economic growth and trade in the Asia-Pacific. The President also said he is looking forward to his upcoming March 25-27 trip to Korea and anticipates a successful Nuclear Security Summit.

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KORUS

•  The KORUS agreement, between the United States and the Republic of Korea, our seventh largest trading partner, is the strongest trade agreement the United States has concluded, with strong provisions to eliminate tariffs and non-tariff barriers, and is the most commercially significant U.S. trade agreement in nearly two decades.

•  Tariffs cuts on goods in KORUS will support an estimated 70,000 American jobs and increase U.S. exports to Korea by $10-11 billion.

•  Upon the agreement's entry into force, Korean tariffs will be eliminated on nearly 80 percent of U.S. manufactured exports to Korea and on approximately two-thirds of U.S. agricultural exports, and numerous non-tariff measures will be eliminated as well.

•  Following the President's announcement in December 2010 of important new commitments to resolve outstanding issues related the KORUS, the agreement was approved by strong bipartisan majorities in Congress in October 2011. The agreement was approved by Korea's National Assembly in November 2011; Korean economists have predicted the agreement will significantly increase Korea's economic growth as well.