The Detroit News reports that the U.S. government and South Korea are working to finalize a free trade deal in advance of the November 11 G20 summit in Seoul. The two countries already came to an agreement back in 2007, but the Bush administration didn't submit the pact to Congress for approval. Ford and Chrysler spoke out against the agreement in its current form due to the large automotive trade gap between the two countries. Through August of this year, the trade deficit sat at $6.8 billion dollars, up from $4.8 billion in 2009, and Korean automakers have imported a reported 411,000 vehicles Stateside compared to only 7,600 U.S. vehicles that were brought to Korea.
A big reason Detroit metal doesn't sell in Korea is the country's eight percent tariff on autos, compared to a 2.5 percent tariff for auto imports to the U.S. Korean ambassador to the U.S. Han Duk-Soo says that removing the larger tax on U.S. vehicles will help sell more Motown Metal and points to the fact that European and Japanese automakers export about 80,000 vehicles to Korea annually as proof.

[Source: Detroit News]

Share This Photo X