BILL NUMBER: SJR 4INTRODUCED BILL TEXT INTRODUCED BY Senator Harman APRIL 4, 2011 Relative to the United States - Korea Free Trade Agreement. LEGISLATIVE COUNSEL'S DIGEST SJR 4, as introduced, Harman. United States - Korea Free Trade Agreement. This measure would memorialize the Congress of the United States to approve and enact the United States - Korea Free Trade Agreement. Fiscal committee: no. WHEREAS, The Republic of Korea is the 15th largest economy in the world; and WHEREAS, The Republic of Korea is the seventh largest trading partner of the United States, the fifth largest market for United States agricultural goods, the second largest market for United States services in Asia, and the 10th largest market for United States information and technology products; and WHEREAS, In 2010, two-way trade between Korea and the United States totaled over $87.7 billion; and WHEREAS, In 2010, Korea was California's fifth largest export market for goods, with exports totaling over $8 billion; and WHEREAS, On June 30, 2007, the United States and the Republic of Korea signed the United States - Korea Free Trade Agreement; and WHEREAS, Under the United States - Korea Free Trade Agreement, over 95 percent of bilateral trade in consumer and industrial products would become duty free within three years, and most remaining tariffs would be eliminated within 10 years according to the United States Trade Representative; and WHEREAS, For agricultural products, the United States - Korea Free Trade Agreement would immediately eliminate or phase out tariffs and quotas on a broad range of products, with almost two-thirds, by value, of Korea's agriculture imports from the United States becoming duty free immediately; and WHEREAS, For services, the United States - Korea Free Trade Agreement would provide meaningful market access commitments that extend across virtually all major service sectors, including greater and more secure access for international delivery services and the opening up of the Korean market for foreign legal consulting services; and WHEREAS, In the area of financial services, the United States - Korea Free Trade Agreement would increase access to the Korean market and ensure greater transparency and fair treatment for United States suppliers of financial services; and WHEREAS, In the area of nontariff barriers, the United States - Korea Free Trade Agreement would address a wide range of sectors and advance United States interests and due process on competition policy, labor and environment, and transparency; and WHEREAS, The United States - Korea Free Trade Agreement would provide United States suppliers with greater access to the Korean government procurement market; and WHEREAS, As a result of the aforementioned and other benefits associated with the implementation of the United States - Korea Free Trade Agreement, the United States International Trade Commission (USITC) has concluded that the United States gross domestic product would increase by $10 billion to $12 billion annually; and WHEREAS, The USITC estimated that the United States - Korea Free Trade Agreement would increase United States exports to Korea by $11 billion annually; and WHEREAS, The United States Department of Commerce estimates that the United States - Korea Free Trade Agreement would create 70,000 new jobs and failure to enact the agreement would lead to the loss of over 350,000 jobs due to bilateral trade agreements enacted with Korea by Canada and the European Union; and WHEREAS, China's trade with the Republic of Korea has been expanding rapidly, necessitating a response from the United States to avoid being left behind; and WHEREAS, With the implementation of the United States - Korea Free Trade Agreement, United States exports to Korea are expected to increase significantly in the export of agricultural products, machinery, electronics, transportation equipment, and other sectors; and WHEREAS, Under the United States - Korea Free Trade Agreement, California's exports of nearly $2 billion in computer and electronic products would become more competitive and affordable with the immediate removal of related tariffs; and WHEREAS, According to the United States Food and Agriculture Department, under the United States - Korea Free Trade Agreement, Korean duties on major California agricultural products, including almonds, pistachios, frozen orange juice, wine, and raisins would be eliminated immediately; and WHEREAS, Under the United States - Korea Free Trade Agreement, California companies would receive strengthened protections in Korea for intellectual property, including software, music, film, videos, and text; and WHEREAS, The United States - Korea Free Trade Agreement would help to solidify the two countries' long-standing geostrategic alliance; now, therefore, be it Resolved by the Senate and the Assembly of the State of California, jointly, That the Legislature, in recognizing the importance of reducing trade barriers between the United States and the Republic of Korea in order to increase exports, create jobs, stimulate the economy, and improve bilateral relations, respectfully memorializes the Congress of the United States to approve and enact the United States - Korea Free Trade Agreement; and be it further Resolved, That the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.