Chrysler, UAW urge rejection of Korea free trade agreement

Chrysler and the United Auto Workers union urged members of a Senate committee to reject a proposed Korea Free Trade Agreement. The deal would immediately eliminate the entire U.S. tariff on Korean passenger cars and most of Korea’s tariff on U.S. light vehicles, currently eight percent on passenger vehicles and ten percent on trucks. It also eliminates the tariffs on most auto parts, which vary from three to eight percent. In addition, the pact would phase out the 25 percent American tariff on Korean pickups over ten years.

John Bozzella, Chrysler’s vice president for external affairs, said, “We simply cannot support the U.S.-Korea Free Trade Agreement in its current form.”

Bozella pointed out the agreement being considered would not work to open Korea’s auto market which is largely closed to imports.

UAW President Ron Gettelfinger said the agreement would aggravate the $13 billion U.S. trade deficit with Korea. The automotive sector currently accounts for about 80 percent of the deficit.

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