The United States International Trade Commission has quoted the submission of the Korea International Trade Association in its latest report on the impacts of free trade agreements.

The report, titled “The Impact of the Trade Agreement,” published by the USITC in June, cited the paper that suggested positive impacts of the Korea-U.S. free trade agreement, according to KITA on Monday. 

“U.S. exports to Korea of IP (intellectual property)-intensive products and services, including software, films and television programming, have experienced significant growth,” writes the report by the U.S. trade commission, quoting the paper submitted by KITA.

It also added, “The association further states that many products manufactured in Korea, such as flat-panel displays for companies like Samsung and LG, incorporate intellectual property designed and developed in the United States.”

Earlier, KITA had delivered its opinion on the free trade agreement of the two nations, saying, the agreement “has led to significant growth in the flow of Korean foreign direct investment into the United States, leading to new business opportunities and well-paying jobs.”

By sector, manufactured goods account for most of the exports ($37.4 billion), according to the KITA report.

“This reflects growth of 5.6 percent in 2014 -- nearly four times faster than manufacturing export growth to the world at large -- and a total that is now 8.7 percent above pre-KORUS FTA levels,” the paper said.

As to the automobile sector, the report stated, “The lower tariffs resulting from KORUS FTA have yielded an increase in auto exports to Korea of over 250 percent by value between 2011 and 2015, more than 10 times faster than U.S. auto exports to the world.”

Korea is now America’s 10th largest export market for autos, with annual exports well exceeding $1 billion for the second consecutive year in 2015.

“The latest report, which shows FTA’s positive impact on the U.S. economy, is expected to weaken the negative voices about FTA,” said KITA’s spokesperson.

By Shin Ji-hye (shinjh@heraldcorp.com)