Korea to Manage Free Trade Using U.S. Department of Commerce Model in Response to Korean U.S. Free Trade Agreement

BOULDER, Colo. August 6, 2006 –A Korean delegation, lead by Mr. Sung-ho Choi, Visiting Fellow to the Korean Small Business Institute and Policy Advisor to the Korean Ministry of Commerce and Industry (MOCIE), will travel to the Rocky Mountain Trade Adjustment Assistance Center (RMTAAC) in Boulder, Colorado to gain insights on trade adjustment assistance from the successful U.S. program. In their desire to provide the best assistance to smaller companies not accustomed to import competition, Korea is looking to the U.S. TAA for firms for guidance, citing the program’s more than 30 years of success.

Christopher Stone, Project Manager with RMTAAC, states, “Our program enables companies to make adjustments to their business strategies required to be successful against ever-increasing foreign competition.” The primary function of TAA for Firms is to provide business evaluation, consulting and project management for manufacturers impacted by global trade. The U.S. TAA also provides grants of up to $75,000, to be matched dollar for dollar by the firm. The consultation services maximize the impact of the grant, which may be allocated toward initiatives such as marketing strategy and tactics, development of technology, information systems and worker skill development.

During their visit, the delegates will observe practices and learn about the program based on the U.S. TAA legislation. In addition, they will learn the processes by which firms are engaged, evaluated and how strategic initiatives are developed and managed. Delegates from Korea will include Mr. Jae-Ha Kim, Deputy Director of the Trade Policy Division at MOCIE and Mr. Byung-Chul Lee, Manager of TAA for the Korean Small Business Corporation.

In addition to their meetings with RMTAAC, the delegates will spend time meeting with Denver area Federal and University of Colorado officials responsible for the administration of the TAA for Firms program. To conclude the Denver segment of their agenda, they will meet with two local manufacturers that have received TAA For Firms’ assistance. The delegation will then proceed to Washington, DC to meet with U.S. Department of Commerce and Economic Development Agency (EDA) officials to gain additional insights to guide the administration and implementation of a successful Korean TAA program.

Currently being negotiated, the Korea U.S. Free Trade Agreement (KORUS FTA) aims for mutually beneficial increased global trade and the accompanied economic development, Korea is anxious to garner domestic support for the agreement. To this end, Korea, the world’s tenth largest economy with particularly strong growth over the last decade, enacted a Trade Adjustment Assistance Law in April 2005 to help Korean firms cope with the increased competition that results from free trade agreements such as KORUS FTA. This legislation will become effective in April 2007.

Administered by the U.S. Department of Commerce, TAA for Firms is a proven turn-around program that delivers the most reliable trade remedy to small U.S. manufacturers, producing dramatic and measurable increases in sales and job growth during times of global change. For more information, please visit www.TAACenters.org.

CONTACT: Jim Kendrick of Metzger Associates, 303.786.7000, jkendrick@metzger.com,
for RMTAAC, Tania Bahr-Torline, 303.499.8222, Bahr-Torline@RMTAAC.org.

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