Proposed U.S.-South Korea Free Trade Agreement: Potential National Sector-Specific and State Export Effects
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Proposed U.S.-South Korea Free Trade
Agreement: Potential National Sector-Specific
and State Export Effects
-name redactedSpecialist in International Trade and Finance
-name redactedSpecialist in International Trade and Finance
-name redactedSpecialist in Agricultural Policy
-name redactedSpecialist in Industrial Organization and Business
June 20, 2011
Congressional Research Service
7-....
www.crs.gov
R41879
CRS Report for Congress
Prepared for Members and Committees of Congress
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Summary
In February 2011, the United States and South Korea finalized negotiations on a bilateral free
trade agreement. As a result, the Obama Administration is expected to submit implementing
legislation to the 112th Congress on the proposed U.S.-South Korea Free Trade Agreement
(KORUS FTA). This report addresses congressional interest in the effects of this agreement on
exports by state to South Korea by using two sets of data. Data developed by the U.S.
International Trade Commission (USITC) are used to identify the possible direction of trade
change for 40 industries at the national level. These results are paired with lists of each state’s top
10 exports which provide a guide to the possible direction of trade for various state industries as a
result of tariff elimination and tariff rate quota reductions under the proposed KORUS FTA.
Improved access for services, liberalized investment regimes, and elimination of non-tariff
barriers for a few goods and agricultural products are not captured in this analysis.
Estimating the trade effects of a potential FTA, however, is highly sensitive to the assumptions
used and to important limitations of the available data. Such estimates are especially problematic
at the state level. As a result, the data in this report should be viewed as providing a general sense
of the possible impact of the proposed FTA on state level exports. Over the full implementation
period of the agreement, a broad range of economic factors can overwhelm the potential effects of
tariff and tariff rate quota provisions. Whether a state’s exports are higher as a result of the
KORUS FTA will depend significantly on whether firms that now export take advantage of the
market openings (e.g., declining or eliminated tariffs, expanding or phased out quotas) negotiated
in this trade agreement. In addition, the extent to which state exports change in the same pattern
as projected by the USITC estimates, will depend on the extent to which they echo the makeup of
the respective industry at the national level.
While South Korea is the United States’ seventh largest trading partner, it accounts for less than
3% of all U.S. trade. It has a population one-sixth that of the United States. By comparison,
Canada and Mexico, the United States’ first and third largest trading partners, with whom the
United States also has a trade agreement (the North American Free Trade Agreement (NAFTA)),
accounted for 16% and 12% respectively of total U.S. trade in 2010.
The impact of the KORUS FTA on the exports of individual states reflects both projected national
effects on industrial sectors and the composition of industries within each state. Manufactured
products currently dominate U.S.-South Korea trade, and the dollar value of exports in virtually
all industries is expected to be higher than without a trade agreement. However, the greatest
sectoral growth rate in trade is expected to come from agricultural exports, in states with large
agricultural sectors. Higher imports in some industries, particularly auto and parts production, are
not expected to affect gross exports, but could affect net exports.
The discussion in this report is limited to presenting the effects of the KORUS FTA on U.S.
exports to South Korea on a national level with possible implications at the state level. It does not
present data on U.S. imports from South Korea at the state level because of data issues.
Nevertheless, increases in imports in some sectors and in some states could be higher than
increases in exports as a consequence of the FTA.
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Contents
U.S.-South Korea Trade................................................................................................................... 2
Potential National Sector-Specific Trade Effects of the KORUS FTA............................................ 4
USITC Estimates of Total Sectoral Changes............................................................................. 5
Possible State Export Effects of the KORUS FTA .......................................................................... 7
Census Data............................................................................................................................... 7
Figures
Figure 1. Total Exports and Imports of Goods Traded with South Korea under No FTA,
and Projected after Full Implementation of the Proposed KORUS FTA...................................... 5
Tables
Table 1. U.S. Goods and Services Traded with South Korea and the World, 2010 ......................... 2
Table 2. Top 25 U.S. Exports to South Korea, 2010........................................................................ 3
Table 3. Top 10 U.S. Imports from South Korea, 2010 ................................................................... 4
Table 4. Simulated (GTAP) Effects of the Proposed KORUS FTA on Net Exports for 40
Sectors Relative to the Projected 2008 Economy......................................................................... 6
Table 5. State Exports to South Korea, State Shares of All U.S. Exports to South Korea,
and South Korea’s Share of All State Exports to the World, 2010 ............................................... 8
Table B-1. Top 25 U.S. Exports to South Korea, 2010.................................................................. 59
Table B-2. Top 10 U.S. Imports from South Korea, 2010 ............................................................. 60
Table C-1. CRS Estimates of States for which Census Origin of Manufacturing (OM)
Trade Data Overestimate or Underestimate State Manufacturing or Agricultural Exports
by 25% or More.......................................................................................................................... 64
Appendixes
Appendix A. State Tables................................................................................................................. 9
Appendix B. Detailed U.S.-South Korea Trade Data .................................................................... 59
Appendix C. Trade Models and Data Issues.................................................................................. 61
Contacts
Author Contact Information........................................................................................................... 65
Acknowledgments ......................................................................................................................... 65
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
T
his report provides indications of the possible effects of the proposed U.S.-Korea Free
Trade Agreement (KORUS FTA) on individual states.1 For each state the indications result
from pairing two sets of data. The first set is based on U.S. International Trade
Commission (USITC)-estimated changes in U.S. exports and imports at the national level after
full implementation of the KORUS FTA, compared to what trade with South Korea would be
under a no-agreement scenario.2 The second set, included in Appendix A, is Census Bureau data
which tracks the annual movement of exports to their foreign destination—in this case South
Korea—by state.
Whether a state’s exports are higher as a result of the KORUS FTA will depend significantly on
whether firms that now export take advantage of the market openings (e.g., declining or
eliminated tariffs, expanding or phased out quotas) negotiated in this trade agreement. In addition,
the extent to which a state’s exports change in the same pattern as projected by the USITC
estimates will depend on the extent to which the industry in a given state echoes the makeup of
the respective industry at the national level. However, because the model upon which USTIC
estimates were based uses only highly aggregated sectors, the extent of that similarity or
difference cannot be determined. Therefore, the indication of industries for which net exports
(exports minus imports) are projected to increase or decrease as listed in Table 4 should be
viewed as providing a general “compass” rather than serving as a precise global positioning
system in projecting state industry export changes upon full implementation of the KORUS FTA.3
Estimating the trade effects of FTAs, including the proposed KORUS FTA, is imprecise
and highly sensitive to the assumptions that are used.4 For greater detail, see Appendix
C, which discusses trade models used by the USITC and shortfalls associated with Census
Bureau state-level trade data. As detailed in the appendix, such estimates are even more
problematic at the state level for several reasons. One is the interplay between state industrial
composition and problems inherent in the data to measure state exports to a foreign country. That
is, the data tend to overestimate agricultural and/or manufacturing exports for some states, and
underestimate them for others. In addition, the data capture the export value of the finished
product and assign that entire value to the final state from which the product is exported. As a
result, the data do not capture the value added by production that occurs in other states. Moreover,
while trade agreements generally are comprehensive in nature and cover goods, services5, and
1
For a general discussion of the effects of the KORUS FTA, see CRS Report RL34330, The Proposed U.S.-South
Korea Free Trade Agreement (KORUS FTA): Provisions and Implications, by (name redacted)
2
USITC, U.S.-Korea Free Trade Agreement: Potential Economy-wide and Selected Sectoral Effects, Publication 3949,
September 2007. Seven chapters plus additional material.
3
Full implementation will occur for many products within 10 years, with some provisions applicable to sensitive
agricultural products to be phased in over 23 years.
4
Thomas Hertel, David Hummels, Maros Ivanic, and Roman Keeney, How Confident Can We Be in CGE-Based
Assessments of Free Trade Agreements?, GTAP Working Paper No. 26, March 2004; Martina A. Brockmeier,
A Graphical Exposition of the GTAP Model, GTAP Technical Paper No. 8, March 2001. See also CRS Report R41660,
Proposed U.S.-South Korea Free Trade Agreement and Potential Employment Effects: Analysis of Studies, by (name
redacted) and (name redacted).
5
This report does not attempt to estimate the value of trade in services by state. Services differ from manufactured
goods in that they are intangible, cannot be stored and must be consumed at the point of production. Rapid changes in
technology, however, are reducing even these restrictions on services. Illustrative examples of tradable services include
information; banking and insurance; professional, scientific, and technical services; education; arts and entertainment;
communication and health care. As a result of these and other complications, trade in services is difficult to value,
(continued...)
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
investment, estimates of exports focus narrowly on the goods sector and do not adequately
represent the total impact of the agreements. In addition to the national-level estimates featured in
this report, states may experience a broad range of benefits from liberalizing trade in services and
reducing or eliminating barriers to investment flows. Provisions that reduce barriers to trade in
services potentially could have a large and positive effect on the U.S. economy, since the United
States is highly competitive in a number of services sectors and U.S. direct investment abroad
often spurs exports.
U.S.-South Korea Trade
South Korea is the seventh largest U.S. export partner, receiving nearly $39 billion in U.S. goods
exports, or about 3% of all such U.S. exports of almost $1.3 trillion in 2010. Individual state
shares of these exports varied from 21% (California) to 0.03% (South and North Dakota). When
services exports are added, total combined U.S. exports to South Korea in 2010 totaled about $55
billion (Table 1).
In contrast, the United States imported nearly $60 billion in goods and services from South Korea
in 2010. Goods accounted for $49 billion, or about 2.6% of total U.S. goods imports of $1.9
trillion. As a consequence, the United States experienced a merchandise trade deficit with South
Korea in 2010 of $10 billion, or about 1.5% of the total U.S. merchandise trade deficit. Despite
being the seventh largest U.S. trade partner, export opportunities for the United States are limited
because of the size of the South Korean market, which consists of some 50 million consumers.
Table 1. U.S. Goods and Services Traded with South Korea and the World, 2010
South Korea
World
U.S. Trade with South
Korea as % of Trade
with World
Goods
$39
$1,278
3.1%
Goods and Services
55
1,834
3.0
Goods
49
1,912
2.6
Goods and Services
60
2,330
2.6
Goods
-10
-634
1.6
Goods and Services
-5
-496
1.0
U.S. Trade (in $billions) with:
Exports
Imports
Balance
Source: Data for trade in goods: Global Trade Atlas. For trade in services: U.S. Department of Commerce,
Bureau of Economic Analysis.
Table 2 and Table 3 list key U.S. exports to and imports from South Korea, respectively. The
products in the tables represent 88% of all U.S. exports to and imports from South Korea. Table 2
indicates that U.S. exports to South Korea are varied, with the top five such U.S. exports
(...continued)
especially at the state level where such data are not collected. See CRS Report RL33085, Trade in Services,: The Doha
Development Agenda Negotiations and U.S. Goals, by (name redacted).
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
accounting for about 50% of all U.S. exports to South Korea. These categories are: machinery
(e.g., for manufacturing semiconductor devices), electrical machinery (especially integrated
circuits and semiconductor devices), medical instruments, civilian aircraft engines and parts, and
organic chemicals. (For more export and import detail, see Table B-1.)
Table 2. Top 25 U.S. Exports to South Korea, 2010
HTS
Chapter
Export Value
($ millions)
Percent of Total
Machinery, Reactors, Boilers
6,946
18
85
Electrical Machinery
5,075
13
90
Optical, Medical Instruments
2,660
7
88
Aircraft, Spacecraft
2,431
6
29
Organic Chemicals
2,153
6
10
Cereals
1,847
5
27
Mineral Fuel, Oil
1,518
4
39
Plastic
1,236
3
72
Iron and Steel
1,146
3
98
Special Classification Provisions (Military equipment
exported with the expectation of being returned to the
U.S.)
1,025
3
87
Vehicles, Not Railway
814
2
38
Miscellaneous Chemical Products
809
2
02
Meat
783
2
28
Inorganic Chemicals; Rare Earth Metals
739
2
30
Pharmaceutical Products
644
2
93
Arms and Ammunition
586
2
12
Misc. Grain, Seed
560
1
71
Precious Stones
498
1
47
Woodpulp
423
1
41
Hides and Skins
410
1
76
Aluminum and Articles Thereof
376
1
08
Edible Fruit and Nuts
371
1
26
Ores, Slag, Ash
342
1
73
Iron and Steel Products
312
1
23
Food Waste
292
1
SUB-TOTAL Top 25
$33,994
88%
TOTAL All Products
$38,844
100%
84
Product
Source: Global Trade Atlas (Census data). HTS: Harmonized Tariff Schedule.
Table 3 shows that U.S. imports from South Korea are narrowly focused and more concentrated
than are U.S. exports. Nearly 70% of all import categories are concentrated in three broad sectors.
These are: electrical machinery (especially telephone sets and other apparatus for
voice/image/data transmission), non-electrical machinery (especially parts and accessories for
office machines, refrigerators and freezers, and washing machines), and motor vehicles (primarily
passenger cars, parts, and accessories). (For more detail, see Table B-2.)
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Table 3. Top 10 U.S. Imports from South Korea, 2010
HTS
Chapter
Product
Import
Value
($ millions)
Percent of
Total
85
Electrical Machinery
15,269
31
84
Machinery, Reactors, Boilers
9,346
19
87
Vehicles and Parts, Not Railway
9,258
19
27
Mineral Fuel, Oil
2,416
5
40
Rubber
1,572
3
73
Iron and Steel Products
1,540
3
39
Plastic
1,066
2
29
Organic Chemicals
946
2
72
Iron and Steel
Optical, Medical Instruments
893
845
2
2
90
SUB-TOTAL Top 10
$43,150
88%
TOTAL All Products
$48,860
100%
Source: Global Trade Atlas (Census data). HTS: Harmonized Tariff Schedule.
Potential National Sector-Specific Trade Effects of
the KORUS FTA
According to studies conducted by the USITC, U.S. exports of goods to South Korea under the
KORUS FTA could increase by more than imports from South Korea, in both percentage and
value terms, slightly reducing, but not eliminating the U.S. trade deficit with South Korea. With
this slight reduction in the U.S. trade deficit with South Korea, however, the overall U.S. trade
deficit with the world would change almost imperceptibly. The USITC projects that, compared
with a no KORUS FTA scenario, total U.S. merchandise exports to South Korea as a result of the
FTA would grow over the 10-year implementation period, by about 24%6 an average of about 2%
per year, and merchandise imports would grow by about 10%,7 or an average of about 1% per
year, as indicated in Figure 1. For most products, major increases in exports could occur in the
latter part of the phase-in period. The study cautions, however, that without a full quantitative
analysis of services trade and international investment patterns, simulation results of the USITC
study in general should not be interpreted as changes in total imports and exports, or as implying
meaningful information about the balance of trade impact of the entire U.S.-Korea FTA.8
U.S. imports in some sectors could rise more than normally expected as a consequence of the
KORUS FTA. According to the USITC, such imports as textiles, apparel, leather products,
petroleum and coal products, metal products, and motor vehicles and parts could increase over the
full implementation period of the agreement.
6
By $9.7 billion to $10.9 billion on a 2001 model of the world economy projected to a 2008 export base of $43 billion
(USITC report, chapter 2, Table 2.2).
7
By $6.4 billion to $6.9 billion on a 2001 model of the world economy projected to a 2008 import base of $65 billion
(USITC report, chapter 2, Table 2.2).
8
See USITC report, chapter 2, table 2.3 data (USITC Executive Summary, p. xix).
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Figure 1.Total Exports and Imports of Goods Traded with South Korea under No
FTA, and Projected after Full Implementation of the Proposed KORUS FTA
(Based on Projected 2008 Economy)
80
$ Billions
60
Exports
Imports
40
20
0
No FTA
After full
Implementation
Source: USITC, Potential Economy-Wide and Selected Sectoral Effects, Table 2.2
USITC Estimates of Total Sectoral Changes
The USITC used an economic model known as the Global Trade Atlas Project (GTAP), located at
Purdue University9 to estimate quantitative changes in trade (exports and imports) for 40 sectors.
These estimations are based on KORUS FTA changes in tariff rates and tariff rate quotas at the
end of the phase-in period of the agreement. The results are reported as a range of high and low
proportional effects (percentage increases or decreases in trade) and high and low potential
changes in trade values for various sectors, relative to trade flows that would have occurred in
2008 if there were no FTA with South Korea. Table 4 lists these in three groups: (1) sectors for
which increases in U.S. exports to South Korea are expected to exceed increases in U.S. imports
from South Korea; (2) industries for which U.S. exports and imports are not expected to increase;
and (3) sectors for which U.S. imports from South Korea are expected to exceed U.S. exports to
South Korea.
Note that macroeconomic changes, such as changes in investment patterns, shifts in the relative
values of foreign currencies, and changes in types of goods traded can overwhelm the impact on
trade of changes in tariffs, such as would occur under the KORUS FTA.
9
The databases are cooperatively produced and maintained by researchers and scholars. The model includes 57 sectors.
Of these, 17 cover services, utilities, and construction, and 40 cover manufacturing, mining, and agriculture.
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Table 4. Simulated (GTAP) Effects of the Proposed KORUS FTA on Net Exports for
40 Sectors Relative to the Projected 2008 Economy
Sectors for which U.S. Net Exports (Exports Minus Imports) are Expected to Increase
Cattle, sheep, goats, horses
Beef meat products
Other meat products
Dairy products
Other animal products
Wheat
Cereal grains other than wheat and rice
Oilseeds
Vegetable oils and fats
Plant-based fibers
Vegetables, fruits and nuts
Crops n.e.c.
Fishing
Forestry
Coal
Minerals n.e.c.
Mineral products n.e.c.
Beverages and tobacco products
Other food products
Wood products
Paper products and publishing
Chemical, rubber, and plastic products
Ferrous metals (iron and steel)
Metals other than iron and steel
Electronic equipment
Machinery and equipment n.e.c.
Transportation equipment other than motor vehicles and parts
Other sectors
Industries for which No Change is Expected
Paddy and processed rice
Raw milk
Wool, silkworm cocoons
Sugarcane, sugar beet, Sugar
Oil and gas
Industries for which U.S. Net Exports are Expected to Decline (New Imports Will Exceed New Exports)
Textiles
Motor vehicles and parts
Wearing apparel
Metal products
Petroleum and coal products
Leather products
Manufactures n.e.c.
Source: Based on USITC Report, chapter 2, table 2.2, results from the GTAP Model..
Notes: N.e.c. - not elsewhere classified.
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Possible State Export Effects of the KORUS FTA
At the state level, tables are included for each state in Appendix A. Each state table lists: (1) the
top-10 state exports to South Korea at the two-digit harmonized tariff schedule (HTS) level; (2)
their dollar value for 2010; and (3) the state’s share of total exports to South Korea that the
sector’s exports represent. These listings may be compared with the USITC-projected direction of
trade estimated to result from the KORUS FTA upon full implementation for that highlyaggregated sector at the national level. At a disaggregated level, the composition of trade for any
given state may differ considerably from that at the national level. However, because the GTAP
model uses only highly-aggregated sectors, the extent of that difference cannot be determined.
Exports in the state tables are reported at the two-digit level to correspond with similar categories
in the GTAP model.
Census Data
The export data for the various states are from the Census Bureau’s series showing the Origin of
Movement (OM) of state-level exports, by foreign destination. The Census Bureau’s OM Data
Series is compiled from the Electronic Export Information (EEI) filed by exporters or their
agents. The data represent a shipment of one or more kinds of merchandise from one exporter to
one foreign importer on a single carrier. The state identified in the data is that from which the
merchandise starts its journey. It represents the origin of transportation, not the origin of
production of the exports. According to the Census Bureau, there are a number of known
limitations to the data. In particular, whenever shipments represent a consolidation of goods, such
as through warehouses, the state with the warehouse will be credited with the exports, rather than
the state of origin of the exports. This caveat is particularly relevant to agricultural products
shipped from inland states down the Mississippi River for export from the port of New Orleans.
In this case, New Orleans would be credited as the state of origin of the exports. In addition,
when goods are stored and then exported by central offices or intermediaries, export data would
understate exports from the original production state and overstate exports from the office or
consolidation point.
Generally speaking, OM data tend to overestimate exports from port states such as California and
New York, and underestimate exports from such interior states as Iowa, Missouri, and South
Dakota. For more details, see Appendix C.
Table 5 lists state exports to South Korea based on available OM data. It also includes:
(1) information on state shares of all U.S. exports to South Korea, and (2) state exports to South
Korea as a share of total state exports to the world. CRS did not attempt to rank the states by the
OM data because of limitations explained above—namely that the data tend to overestimate or
underestimate exports for various states.
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Table 5. State Exports to South Korea, State Shares of All U.S. Exports to South
Korea, and South Korea’s Share of All State Exports to the World, 2010
(based on Census data)
State
Exports
to S.
Korea in
($Mil.)
State
Share of
All U.S.
Exports
to S.
Korea
(%)
Exports to S.
Korea as %
of Total
State
Exports to
the World
(%)
All States
$38,844
100%
3.04%
Alabama
574
1.5
3.7
Montana
$187
0.5%
13.1%
Alaska
477
1.2
11.5
Nebraska
271
0.71
4.7
Arizona
238
0.6
1.5
Nevada
41
0.1
0.7
Arkansas
145
0.4
2.8
New Hampshire
131
0.3
3.0
California
8,046
20.7
5.6
New Jersey
1,666
4.3
5.2
Colorado
201
0.5
3.0
New Mexico
28
0.1
1.8
Connecticut
475
1.2
3.0
New York
1,992
5.1
2.9
Delaware
120
0.3
2.4
North Carolina
606
1.6
2.4
Florida
467
1.2
0.8
North Dakota
11
0.03
0.4
Georgia
631
1.6
2.2
Ohio
640
1.6
1.5
Hawaii
15
0.04
2.2
Oklahoma
58
0.2
1.1
Idaho
502
1.3
9.7
Oregon
937
2.4
5.3
Illinois
788
2.0
1.6
Pennsylvania
792
2.0
2.3
Indiana
551
1.4
1.9
Rhode Island
17
0.04
0.9
Iowa
224
0.6
2.1
South Carolina
378
1.0
1.9
Kansas
228
0.6
2.3
South Dakota
13
0.03
1.0
Kentucky
482
1.2
2.5
Tennessee
557
1.4
2.1
Louisiana
1,644
4.2
4.0
Texas
6,447
16.6
3.1
Maine
99
0.3
3.1
Utah
273
0.7
2.0
Maryland
481
1.2
4.7
Vermont
130
0.3
3.0
Massachusetts
893
2.3
2.3
Virginia
379
1.0
2.2
Michigan
751
1.9
1.7
Washington
2,719
7.0
5.1
Minnesota
627
1.6
3.3
West Virginia
107
0.3
1.7
Mississippi
72
0.2
0.9
Wisconsin
361
1.0
1.8
Missouri
656
1.7
5.1
Wyoming
39
0.1
3.9
State
State
State
Exports
to S.
Korea in
($Mil.)
State
Share of
All U.S.
Exports to
S. Korea
(%)
Exports to S.
Korea as %
of Total
State
Exports to
the World
(%)
Source:
State Exports to South Korea: Global Trade Atlas (Census) data;
State Share of all U.S. exports to South Korea: Calculated by CRS from Global Trade Atlas data.
Exports to South Korea as Percent of Total State Exports to World: Calculated by CRS from Global Trade Atlas data.
State tables follow in Appendix A, listed alphabetically.
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Appendix A. State Tables
Alabama
In 2010, Alabama shipped close to $600 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 4% of the state’s total
exports to the world. The top 10 products accounted for 90% of Alabama’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis (see
table, below):
•
Net exports (exports minus imports) could increase in: optical instruments (optical
fiber); organic chemicals; plastic; machinery (including engines, motors, and office
machine parts); iron and steel scrap; ores, Slag, Ash; paper and paperboard;
miscellaneous chemical products; woodpulp; and cereals (corn).
•
According to CRS estimates detailed in Appendix C, data underestimate
manufacturing exports from Alabama by at least 25%.
Alabama’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$574
100%
90
Optical/Medical Instruments (Optical fiber – 95%)
140
24
29
Organic Chemicals (Phenols – 85%)
117
20
39
Plastic (Polyethers, epoxides & polyesters, primary forms – 82%)
56
10
84
Machinery (Engines and motors – 17%; Office machine parts –
15%)
48
8
72
Iron and Steel (Ferrous waste & scrap – 99%)
48
8
26
Ores, Slag, Ash
40
7
48
Paper, Paperboard
20
4
38
Miscellaneous Chemical Products
18
3
47
Woodpulp
16
3
10
Cereals (Corn – 100%)
13
2
Total for Top 10 Exports
$516
90%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
9
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Alaska
In 2010, Alaska shipped nearly $500 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 12% of the state’s
total exports to the world. The top 10 products accounted for virtually 100% of Alaska’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: fish and seafood; ores, slag, ash; wood; powered
aircraft; electrical machinery (electric motors and generators); prepared fish (fish
sticks); fish meal for animal feed; fish/animal bait; machinery (engines and motors);
and optical and medical instruments.
Alaska’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
Total Exports
$477
100%
03
Fish and Seafood (Surimi and fish fillets – 51%, fish livers &
roes – 24%)
255
54
26
Ores, Slag, Ash (Zinc ores and concentrates – 72%)
170
36
44
Wood
31
6
88
Aircraft/Spacecraft (Powered aircraft – 84%)
9
2
85
Electrical Machinery (Electric motors and generators – 91%)
3
1
16
Prepared Meat, Fish (Fish sticks – 73%)
3
1
23
Food Waste; Animal Feed (Fish meal for non-human use –
100%)
2
0.5
05
Other Of Animal Origin (Fish/animal bait – 100%)
2
0.3
84
Machinery (Engines and motors – 91%)
1
0.2
90
Optical/Medical Instruments
1
0.1
Total for Top 10 Exports
$477
99.9%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
10
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Arizona
In 2010, Arizona shipped nearly $250 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 2% of the state’s total
exports to the world. The top 10 products accounted for 87% of Arizona’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: electrical machinery (integrated circuits); ores, slag,
and ash; optical and medical instruments; cotton; machinery (including
semiconductor manufacturing equipment and office machine parts); aircraft parts;
copper; and woodpulp.
•
Net exports could decline in: cattle hides and skins.
•
Exports in one industry are not estimated in the USITC study: arms and ammunitions
(bombs, grenades).
•
According to CRS estimates detailed in Appendix C, data overestimate both
manufactured and agricultural exports from Arizona by at least 25%.
Arizona’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$238
100%
85
Electrical Machinery (Integrated circuits – 75%)
85
36
26
Ores, Slag, Ash
20
9
90
Optical/Medical Instruments
18
8
93
Arms and Ammunition (Bombs, grenades – 95%)
18
8
52
Cotton/Yarn, Fabric (Cotton – 100%)
18
7
84
Machinery (Semiconductor manufacturing equipment – 45%;
Office machine parts – 15%)
18
7
88
Aircraft, Spacecraft (Aircraft parts – 85%)
9
4
41
Hides and Skins (Cattle hides & skins – 100%)
8
3
74
Copper (Copper waste and scrap – 81%)
7
3
47
Woodpulp
7
3
$208
87%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
11
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Arkansas
In 2010, Arkansas shipped $145 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and less than 3% of
the state’s total exports to the world. The top 10 products accounted for 97% of Arkansas’ total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: organic chemicals; poultry; paper and paperboard;
electrical machinery (especially electromechanical tools); machinery (especially hand
tools); iron and steel; miscellaneous chemical products; inorganic chemicals; and
plastic.
•
Exports in one industry are not estimated in the USITC study: arms and ammunition.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Arkansas by at least 25%.
Arkansas’ Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$145
100%
29
Organic Chemicals
79
54
02
Meat (Poultry – 100%)
20
14
48
Paper, Paperboard
17
11
85
Electrical Machinery (Electromechanical tools – 46%)
6
4
84
Machinery (Hand tools – 21%)
5
4
72
Iron and Steel
7
3
38
Miscellaneous Chemical Products
3
2
28
Inorganic Chemicals; Rare Earth Metals
2
2
39
Plastic
2
1
93
Arms and Ammunition (Bombs, grenades, cartridges and parts –
95%)
2
1
$140
97%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
12
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
California
In 2010, California shipped $8 billion in goods to South Korea, according to the Census Bureau.
This represented 21% of all U.S. exports to South Korea, and nearly 6% of the state’s total
exports to the world. The top 10 products accounted for 78% of California’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: machinery (semiconductors); electrical machinery
(integrated circuits); medical instruments; iron and steel scrap; aircraft engines and
parts; edible fruit and nuts; aluminum waste scrap; food preparations; and inorganic
chemicals.
•
Net exports could decline in: mineral fuel oil (from coal tar).
•
According to CRS estimates detailed in Appendix C, data overestimate
manufacturing exports from California by at least 25%.
California’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
Total Exports
$8,046
100%
84
Machinery (Semiconductor manufacturing equipment – 64%;
Computers and components – 8%; Office machine parts – 5%)
1,854
23
85
Electrical Machinery (Integrated circuits – 29%; Electric apparatus for
line telephony and parts – 15%)
1,461
18
90
Optical, medical instruments
940
11
72
Iron and Steel (Ferrous waste and scrap – 97%)
599
7
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 54%; Aircraft,
spacecraft, and balloon parts – 46%)
434
5
08
Edible Fruit and Nuts (Oranges – 34%; Walnuts – 20%; Almonds –
19%)
335
4
27
Mineral Fuel, Oil (from Coal tar—63%)
207
3
76
Aluminum (Waste and scrap – 76%)
169
2
21
Miscellaneous Food (Food preparations – 87%)
122
2
28
Inorganic Chemicals (Hydrogen, rare gases and other nonmetals –
41%)
103
1
$6,225
78%
HTS
Chapter
Product
Total for 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
13
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Colorado
In 2010, Colorado shipped about $200 million in goods to South Korea, according to the Census
Bureau. This represented 0.5% of all U.S. exports to South Korea, and 3% of the state’s total
exports to the world. The top 10 products accounted for 91% of Colorado’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: beef; optical and medical instruments; machinery
(including computers and components); electrical machinery (including integrated
circuits); aluminum; copper; plastic; iron and steel (rolled); and books, newspapers,
and manuscripts.
•
Net exports could decline in hides and skins.
•
According to CRS estimates detailed in Appendix C, data underestimate
manufactured exports from Colorado by at least 25%.
Colorado’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$201
100%
02
Meat (Beef – 94%; Beef offals – 6%)
58
29
90
Optical/Medical Instruments
35
17
84
Machinery (Computers and components – 40%)
29
14
85
Electrical Machinery (Integrated circuits – 23%)
26
13
41
Hides and Skins (Cattle & horse hides and skins – 100%)
19
10
76
Aluminum
4
2
74
Copper
3
2
39
Plastic
3
2
72
Iron and Steel (Rolled – 90%)
3
1
49
Book/Newspaper/Manuscript
3
1
Total for Top 10 Exports
$183
91%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
14
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Connecticut
In 2010, Connecticut shipped nearly $500 million in goods to South Korea, according to the
Census Bureau. This represented 1% of all U.S. exports to South Korea, and 3% of the state’s
total exports to the world. The top 10 products accounted for 95% of Connecticut’s total exports
to South Korea. By the end of the KORUS FTA implementation period, based on USITC’s
analysis:
•
Net exports could increase in: powered aircraft; machinery (especially gas turbines
and semiconductor manufacturing equipment); electrical machinery (especially that
relating to generators); optical and medical instruments (including liquid crystal
lasers); miscellaneous chemical products; inorganic chemicals; and plastic.
•
Net exports could decline in: iron and steel products.
•
According to CRS estimates detailed in Appendix C, data underestimate both
manufacturing and agricultural exports from Connecticut by at least 25%.
Connecticut’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$475
100%
88
Aircraft/Spacecraft (Civilian aircraft, engines & parts – 99%)
209
44
84
Machinery (Gas turbines – 37%; Semiconductor manufacturing
equipment – 17%)
67
14
85
Electrical Machinery (Electric generating sets and rotary
converters – 39%; Parts of electric motors, generators & sets –
20%)
62
13
90
Optical/Medical Instruments (Liquid crystal devices, lasers –
33%; Compasses & navigational instruments – 12%)
58
12
98
Special Other (Repaired military products – 100%)
17
4
72
Iron and Steel
13
3
38
Miscellaneous Chemical Products
9
2
28
Inorganic Chemicals; Rare Earth Metals
6
1
73
Iron/Steel Products
5
1
39
Plastic
5
1
$450
95%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
15
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Delaware
In 2010, Delaware shipped $120 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and less than 3% of
the state’s total exports to the world. The top 10 products accounted for 97% of Delaware’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: plastic; machinery (machine tool parts); medical
instruments; soap, wax; civilian aircraft engines; miscellaneous chemical products;
organic chemicals; pharmaceutical products; and inorganic chemicals.
•
Net exports could decline in iron and steel products
Delaware’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
$120
100%
39
Total Exports
Plastic (Plates, Sheets – 64%)
43
36
84
Machinery (Machine tools parts – 83%)
35
29
90
Optical/Medical Instruments
20
17
34
Soap, Wax, Dental Preparations (Polishes and creams – 56%)
5
5
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 100%)
4
3
38
2
2
29
Miscellaneous Chemical Products (Finishing agents for textiles,
paper, etc – 87%)
Organic Chemicals
2
1
30
Pharmaceutical Products
2
1
73
Iron/Steel Products (Tubes, Pipes, etc – 95%)
2
1
28
Inorganic Chemicals; Rare Earth Metals
1
1
$116
97%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
16
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Florida
In 2010, Florida shipped nearly $500 million in goods to South Korea, according to the Census
Bureau. This represented about 1% of all U.S. exports to South Korea, and nearly 1% of the
state’s total exports to the world. The top 10 products accounted for 80% of Florida’s total exports
to South Korea. By the end of the KORUS FTA implementation period, based on USITC’s
analysis:
•
Net exports could increase in: plastic; medical devices (including orthopedic
appliances, artificial body parts, and hearing aids); machinery (including gas
turbines); electrical machinery (including integrated circuits); civilian aircraft
engines; tanks and other armored fight vehicles; and pharmaceuticals.
•
Net exports could decline in motor vehicles and parts, leather articles and solid fuels
from coal.
•
Exports in one industry are not estimated in the USITC study: repaired military
products.
•
According to CRS estimates detailed in Appendix C, data overestimate both
manufacturing and agricultural exports from Florida by at least 25%.
Florida’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
Plastic (Polyamides – 89%)
$467
100%
89
19
90
Optical/Medical Instruments (Orthopedic appliances, artificial
body parts, hearing aids, etc – 23%; Medical, surgical, dental, or
veterinary instruments – 19%)
73
16
84
Machinery (Gas turbines – 41%; Taps, cocks, valves, etc, for
pipes, -- 8%); Computers and components – 8%I
56
12
HTS
Chapter
39
Product
85
Electrical Machinery (Integrated circuits – 16%)
37
8
88
Aircraft/Spacecraft (Civilian aircraft, engines, and parts – 59%)
23
5
87
Vehicles, Not Railway (Tanks and other armored fight vehicles
and parts – 37%; Motor vehicle parts and accessories – 34%;
Passenger vehicles – 25%)
21
5
42
Leather Articles; Saddlery; Bags
21
4
98
Special Other (Repaired military products – 94%)
20
4
30
Pharmaceutical Products (Human Blood/Animal Blood/Vaccines,
etc – 92%)
17
4
27
Mineral Fuel, Oil Etc (Solid fuels from coal – 90%)
14
31
Total for Top 10 Exports
$372
80%
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
17
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Georgia
In 2010, Georgia shipped close to $650 million in goods to South Korea, according to the Census
Bureau. This represented 2% of all U.S. exports to South Korea, and more than 2% of the state’s
total exports to the world. The top 10 products accounted for 78% of Georgia’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: machinery; civilian aircraft engines and parts;
woodpulp; plastic; medical instruments; electrical machinery; organic chemicals; salt,
sulfur, earth, stone; iron and steel; and miscellaneous chemical products.
Georgia’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$631
100%
84
Machinery (Turbojets, turbopropellers & other gas turbines and parts
– 57%; Metal-rolling mills – 4%)
147
23
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 91%;
aircraft, spacecraft, and balloon parts – 9%)
85
13
47
Woodpulp
52
8
39
Plastic
41
6
90
Optical/Medical Instruments (Medical, surgical, dental or veterinary
instruments – 30%)
33
5
85
Electrical Machinery (Electrical apparatus for line telephony – 24%)
33
5
29
Organic Chemicals
32
5
25
Salt; Sulfur; Earth, Stone (Kaolinic clays – 81%)
31
5
72
Iron and Steel (Ferrous waste & scrap – 80%)
25
4
38
Miscellaneous Chemical Products
17
3
Total for Top 10 Exports
$493
78%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
18
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Hawaii
In 2010, Hawaii shipped $15 million in goods to South Korea, according to the Census Bureau.
This represented less than 0.04% of all U.S. exports to South Korea, and more than 2% of the
state’s total exports to the world. The top 10 products accounted for 86% of Hawaii’s total exports
to South Korea. By the end of the KORUS FTA implementation period, based on USITC’s
analysis:
•
Net exports could increase in: civilian aircraft engines and parts; cocoa products;
edible fruit and nuts; aluminum waste and scrap; preserved nuts and seeds;
machinery (especially computers and components); woodpulp; and fish and seafood
(especially shrimp).
•
Net exports could decrease in copper articles.
•
Exports in one industry are not estimated in the USITC study: paintings and
drawings.
Hawaii’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$15
100%
88
Aircraft, Spacecraft (Civilian aircraft, engines, and parts – 99.5%)
3
21
18
Cocoa (Cocoa powder – 40%; Chocolate products – 60%)
3
20
97
Art and Antiques (Paintings and drawings – 99%)
2
11
08
Edible Fruit and Nuts (Macademia nuts – 71%; Pears – 20%)
1
8
74
Copper/Articles Thereof
1
7
76
Aluminum (Waste and scrap – 100%)
1
5
20
Preserved Food (Nuts & seeds – 78%)
1
4
84
Machinery (Computers and components – 58%)
1
4
47
Woodpulp (Waste and scrap of paper and paperboard)
0.5
3
03
Fish and Seafood (Shrimp – 73%)
0.5
3
Total for Top 10 Exports
$13
86%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
19
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Idaho
In 2010, Idaho shipped more than $500 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 10% of the state’s
total exports to the world. The top 10 products accounted for 99% of Idaho’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: electrical machinery (integrated circuits), cheese and
nonfat dry milk; paper and paperboard; machinery (semiconductor manufacturing
equipment); special purpose motor vehicles; beauty products; processed potato chips;
vegetables; and woodpulp.
•
Export change in one industry is not estimated in the USITC study: exports of arms
and ammunition
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Idaho by at least 25%.
Idaho’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
Total Exports
$502
100%
85
Electrical Machinery (Integrated circuits – 99.8%)
468
93
04
Dairy, Eggs, Honey (Cheese – 85%; Non-fat dry milk – 10%)
12
2
48
Paper, Paperboard
6
1
84
Machinery (Semiconductor manufacturing equipment – 78%)
3
1
87
Vehicles, Not Railway (Special purpose motor vehicles – 97%)
2
0.4
33
Perfumery, Cosmetic, Etc (Beauty products – 71%)
1
0.2
20
Preserved Food (Processed potato products – 77%)
1
0.2
07
Vegetables (Dried peas – 43%)
1
0.2
93
Arms and Ammunition (Bombs, grenades, cartridges and parts –
100%)
1
0.2
47
Woodpulp
1
0.2
$497
99%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
20
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Illinois
In 2010, Illinois shipped close to $1 billion in goods to South Korea, according to the Census
Bureau. This represented 2% of all U.S. exports to South Korea, and nearly 2% of the state’s total
exports to the world. The top 10 products accounted for 70% of Illinois’ total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: electrical machinery (especially electrical apparatus for
telephone-related equipment); medical instruments; various types of machinery;
animal feeds; tractors; chemical products; synthetic precious stones; iron and steel
scrap; civilian aircraft engines and parts; and corn.
•
Net exports could decline in: motor vehicles, including passenger cars, parts and
accessories.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Illinois by at least 25%.
Illinois’ Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
Total Exports
$788
100%
85
Electrical Machinery (Electrical apparatus for line telephony –
33%; Electrical apparatus for switching – 7%)
129
16
90
Optical/Medical Instruments (Medical, surgical, dental or
veterinary instruments – 58%)
128
16
84
Machinery (highly varied)
101
13
23
Food Waste; Animal Feed (Distillers’ grains – 70%)
46
6
87
Vehicles, Not Railway (Passenger cars – 48%; motor vehicle
parts and accessories – 39%; Tractors – 8%)
39
5
38
Miscellaneous Chemical Products (Antiknock preps & other
additives for mineral oils – 40%)
32
4
71
Precious Stones, Metal (synthetic–99%)
22
3
72
Iron and Steel (Ferrous waste and scrap – 67%)
21
3
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 87%)
19
2
10
Cereals (Corn – 91%)
17
2
Total for Top 10 Exports
$554
70%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
21
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Indiana
In 2010, Indiana shipped more than $500 million in goods to South Korea, according to the
Census Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 2% of the
state’s total exports to the world. The top 10 products accounted for 90% of Indiana’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: pharmaceutical products; machinery (especially
computers and components); orthopedic appliances, artificial body parts, and medical
instruments; tanks and other armored fight vehicles and parts; electrical machinery;
plastic; miscellaneous chemical products; aluminum; books, newspapers and
manuscripts; and stone plaster and cement.
•
Net exports could decline in motor vehicles, parts, and accessories.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Indiana by at least 25%.
Indiana’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$551
100%
30
Pharmaceutical Products
207
38
84
Machinery (Computers and components – 21%; Compression
ignition internal combustion piston engines – 20%)
74
13
90
Optical/Medical Instruments (Orthopedic appliance, artificial
bodies parts, hearing aids – 43%; Medical, surgical, dental or
veterinary instruments – 36%)
53
10
87
Vehicles, Not Railway (Tanks and other armored fight vehicles
and parts – 75%; Motor vehicle parts & accessories – 21%)
45
8
85
Electrical Machinery (Unrecorded media for sound – 20%;
Electrical apparatus for switching – 17%)
43
8
39
Plastic (Polyethers, epoxides & polyesters, primary forms – 40%)
28
5
38
Miscellaneous Chemical Products (Composite diagnostic/lab
reagents – 43%)
15
3
76
Aluminum (Aluminum plates, sheets, and strips – 41%)
10
2
49
Book, Newspaper, Manuscript
9
2
68
Stone, Plaster, Cement, Etc (Millstones for grinding – 96%)
89
2
Total for Top 10 Exports
$494
90%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
22
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Iowa
In 2010, Iowa shipped $224 million in goods to South Korea, according to the Census Bureau.
This represented 1% of all U.S. exports to South Korea, and more than 2% of the state’s total
exports to the world. The top 10 products accounted for 82% of Iowa’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: pork; aluminum; machinery (including piston engines);
optical and medical instruments; pharmaceutical products; animal feeds; electrical
machinery (radar apparatus and navigational and remote control apparatus); prepared
meat (sausages); civilian aircraft engines and parts; and paper and paperboard.
•
According to CRS estimates detailed in Appendix C, data underestimate both
manufactured and agricultural exports from Iowa by at least 25%.
Iowa’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$224
100%
02
Meat (Pork – 61%; Beef – 34%)
96
43
76
Aluminum
19
8
84
Machinery (Piston engines – 24%)
16
7
90
Optical/Medical Instruments (Oscilloscopes and spectrum
analyzers – 32%)
12
5
30
Pharmaceutical Products
9
4
23
Food Waste; Animal Feed (Animal feeds – 64%)
8
3
85
Electrical Machinery (Radar apparatus, radio navigational
aid and remote control apparatus – 23%)
7
3
16
Prepared Meat, Fish (Sausages – 86%)
7
3
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts –
69%)
6
3
48
Paper, Paperboard
6
3
$185
82%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
23
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Kansas
In 2010, Kansas shipped $228 million in goods to South Korea, according to the Census Bureau.
This represented 1% of all U.S. exports to South Korea, and more than 2% of the state’s total
exports to the world. The top 10 products accounted for 94% of Kansas’ total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: beef; inorganic chemicals; pet food; machinery
(including self-propelled bulldozers; graders, and scrapers); civilian aircraft engines
and parts; miscellaneous chemical products; and optical and medical instruments.
•
Net exports could decline in: cattle and horse hides and skins, and synthetic filament
yarn.
•
Exports in one industry are not estimated in the USITC study: repaired military
products.
•
According to CRS estimates detailed in Appendix C, data underestimate both
manufactured and agricultural exports from Kansas by at least 25%.
Kansas’ Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$228
100%
02
Meat (Beef – 91%)
80
35
41
Hides and Skins (Cattle and horse hides & skins – 100%)
77
34
28
Inorganic Chemicals; Rare Earth Metals (Hydrogen, rare
gases and other nonmetals – 97%)
19
8
23
Food Waste; Animal Feed (Pet food – 90%)
12
5
84
Machinery (Self-propelled bulldozers, graders, scrapers, -- 34%)
5
2
54
Manmade Filament, Fabric (Synthetic filament yarn – 100%)
5
2
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts –
99%)
4
2
98
Special Other (Repaired military products – 99.7%)
4
2
38
Miscellaneous Chemical Products
4
2
90
Optical/Medical Instruments
3
1
Total for Top 10 Exports
$213
94%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
24
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Kentucky
In 2010 Kentucky shipped nearly $500 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 3% of the state’s total
exports to the world. The top 10 products accounted for 89% of Kentucky’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: inorganic chemicals; plastic (silicone); machinery
(especially semiconductor manufacturing equipment); pharmaceutical products
(blood and vaccines); miscellaneous chemical products; electrical machinery; optical
and medical instruments, and organic chemicals.
•
Net exports could decline in vehicle parts.
•
Exports in one industry are not estimated in the USITC study: exports of arms and
ammunition.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Kentucky by at least 25%.
Kentucky’s Top 10 Exports to South Korea, 2010
Export Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$482
100%
28
Inorganic Chemicals; Rare Earth Metals
149
31
39
Plastic (Silicone – 72%)
84
17
84
Machinery (Semiconductor manufacturing equipment –
54%)
58
12
30
Pharmaceutical Products (Human Blood/Animal
Blood/Vaccines, etc – 99.8%)
41
9
38
Misc. Chemical Products (Binders for Found Molds –
52%)
25
5
85
Electrical Machinery
22
5
90
Optical/Medical Instruments
15
3
87
Vehicles, Not Railway (Vehicle parts – 99%)
14
3
29
Organic Chemicals
12
3
93
Arms and Ammunition
9
2
$430
89%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
25
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Louisiana
In 2010, Louisiana shipped $2 billion in goods to South Korea, according to the Census Bureau.
This represented 4% of all U.S. exports to South Korea, and 4% of the state’s total exports to the
world. The top 10 products accounted for 97% of Louisiana’s total exports to South Korea. By the
end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: corn; soybeans; organic chemicals; animal feed
(soymeal and distillers’ grains); machinery (hoists); iron and steel scrap; plastic;
soybean oil; and miscellaneous chemical products.
•
Net exports could decline in oils from high temperature coal tar.
•
According to CRS estimates detailed in Appendix C, data overestimate agricultural
exports from Louisiana by at least 25%.
Louisiana’s Top 10 Exports to South Korea, 2010
HTS
Chapter
Product
Total Exports
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
$1,644
100%
10
Cereals (Corn – 100%)
570
35
12
Misc Grain, Seed, Fruit, (Soybeans – 100%)
293
18
27
Mineral Fuel, Oil Etc (Oils from high temperature coal tar – 74%)
271
16
29
Organic Chemicals (Cyclic Hydrocarbons – 27%)
208
13
23
Food Waste; Animal Feed (Soymeal – 55%; Distillers’ grains –
45%)
77
5
84
Machinery (Hoists– 52% )
48
3
72
Iron and Steel (Scrap– 100%)
43
3
39
Plastic (Polymers of ethylene, in primary forms – 60%)
39
2
15
Fats and Oils (Soybean oil – 100%)
27
2
38
Miscellaneous Chemical Products
21
1
$1,595
97%
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
26
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Maine
In 2010, Maine shipped nearly $100 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and more than 3% of
the state’s total exports to the world. The top 10 products accounted for 98% of Maine’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: miscellaneous chemical products; woodpulp; civilian
aircraft engines and parts; electrical machinery (integrated circuits); paper and
paperboard; machinery (pumps and machine tools); fish and seafood (lobster and
frozen eels); plastic; and pharmaceutical products.
•
Exports in one industry are not estimated in the USITC study: arms and ammunition
(parts and accessories).
Maine’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$99
100%
38
Miscellaneous Chemical Products
31
31
47
Woodpulp (Chemical woodpulp, soda or sulfate – 99%)
29
30
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 100%)
15
15
85
Electrical Machinery (Integrated circuits – 99.6%)
7
7
48
Paper, Paperboard (Coated paper and paperboard – 100%)
5
5
93
Arms and Ammunition (Parts & accessories of arms – 99%)
4
4
84
Machinery (Pumps for liquids, liquid elevators, and parts – 73%;
Machine tools for forging, bending, and stamping – 15%)
3
3
03
Fish and Seafood (Lobster – 77%; Frozen eels – 22%)
1
1
39
Plastic
0.5
1
30
Pharmaceutical Products
0.3
0.3
Total for 10 Exports
$97
98%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
27
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Maryland
In 2010, Maryland shipped nearly $500 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 5% of the state’s total
exports to the world. The top 10 products accounted for 92% of Maryland’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: electrical machinery (television, radio, and radar
apparatus parts); miscellaneous chemical products; optical and medical instruments;
certain base metals; plastic; inorganic chemicals; machinery (especially centrifuges,
computers, and components); and aluminum.
•
Net exports could decline in solid fuels from coal.
•
Exports in one industry are not estimated in the USITC study: exports of arms and
ammunition.
•
According to CRS estimates detailed in Appendix C, data overestimate
manufacturing exports and underestimate agricultural exports from Maryland by at
least 25%.
Maryland’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$481
100%
27
Mineral Fuel, Oil Etc (Solid fuels from coal – 100%)
192
40
85
Electrical Machinery (Television, radio, and radar apparatus
parts – 84%)
86
18
38
Miscellaneous Chemical Products
75
16
93
Arms and Ammunition (Military weapons – 100%)
41
9
90
Optical/Medical Instruments
10
2
81
Other Base Metals (Titanium/Waste & Scrap – 100%)
10
2
39
Plastic (Polymers/Polyethers/Expoides & Polyesters – 57%)
8,
2
28
Inorganic Chemicals; Rare Earth Metals
7
1
84
Machinery (Centrifuge – 31%; Computers and components –
13%)
6
1
76
Aluminum (Aluminum bars, rods and profiles – 89%)
5
1
$440
92%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
28
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Massachusetts
In 2010, Massachusetts shipped nearly $900 million in goods to South Korea, according to the
Census Bureau, according to the Census Bureau This represented 2% of all U.S. exports to South
Korea, and more than 3% of the state’s total exports to the world. The top 10 products accounted
for 91% of Massachusetts’ total exports to South Korea. By the end of the KORUS FTA
implementation period, based on USITC’s analysis:
•
Net exports could increase in: machinery (semiconductor manufacturing equipment
and gas turbines); medical instruments; electrical machinery (especially integrated
circuits and electronic apparatus for line telephones); pharmaceutical products; toys
and equipment (swimming pools); miscellaneous chemical products; plastic; ferrous
waste and scrap; silver; and organic chemicals.
•
According to CRS estimates detailed in Appendix C, data overestimate both
manufactured and agricultural exports from Massachusetts by at least 25%.
Massachusetts’ Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$893
100%
84
Machinery (Semiconductor manufacturing equipment – 61%; Gas
turbines – 17%)
443
50
90
Optical/Medical Instruments (Medical, surgical, dental or
veterinary instruments – 31%)
132
14
85
Electrical Machinery (Integrated circuits – 27%; Electrical
apparatus for line telephony – 13%)
89
10
30
Pharmaceutical Products
37
4
95
Toys & Sports Equipment (pools– 100% )
28
3
38
Miscellaneous Chemical Products
21
2
39
Plastic
18
2
72
Iron and Steel (Ferrous waste and scrap – 87%)
17
2
71
Precious Stones, Metals (Silver – 82%)
14
26
29
Organic Chemicals
12
1
Total for Top 10 Exports
$811
91%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
29
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Michigan
In 2010, Michigan shipped more than $750 million in goods to South Korea, according to the
Census Bureau. This represented 2% of all U.S. exports to South Korea, and nearly 2% of the
state’s total exports to the world. The top 10 products accounted for 82% of Michigan’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: various types of motor vehicles and parts; machinery
(centrifuges); inorganic chemicals (rare gasses); cosmetics; plastic; medical
instruments; soap, wax and dental preparations; and tanning dyeing, painting and
putty preparations.
•
Net exports could decline in hides and skins.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Michigan by at least 25%.
Michigan’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
Total Exports
$751
100%
87
Vehicles, Not Railway (Passenger cars – 65%; Motor vehicle parts
and equipment – 26%; Tank and other armored fight vehicles and
parts – 5%)
204
27
84
Machinery (Centrifuges – 38%)
117
16
28
Inorganic Chemicals; Rare Earth Metals (Hydrogen, rare gases,
and other nonmetals – 99.5%)
90
12
33
Perfumery, Cosmetic (Beauty products – 66%; Preparations, oral
dental hygiene; dental floss – 16%; hair preparations – 12%)
41
5
70
Glass and Glassware (Glass mirrors – 98%)
39
5
39
Plastic (Silicones – 42%)
36
5
90
Optical/Medical Instruments
32
5
34
Soap, Wax; Dental Prep
24
3
32
Tanning, Dye, Paint, Putty
16
2
41
Hides and Skins (Cattle & horse hides and skins – 99.9%)
16
2
Total for Top 10 Exports
$614
82%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
30
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Minnesota
In 2010, Minnesota shipped more than $620 million in goods to South Korea, according to the
Census Bureau. This represented 2% of all U.S. exports to South Korea, and more than 3% of the
state’s total exports to the world. The top 10 products accounted for 81% of Minnesota’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: various types of machinery; medical instruments;
plastic; electrical machinery (especially integrated circuits); meats; animal feeds;
stone, plaster and cement; and organic chemicals.
•
Net exports could decline in impregnated textile fabrics.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Minnesota by at least 25%.
Minnesota’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$627
100%
84
Machinery (Centrifuges --- 18%; Semiconductor manufacturing
equipment – 18%; Computers and components – 15%)
129
21
90
Optical/Medical Instruments (Optical fibers – 40%: Medical,
surgical, dental or veterinary instruments – 14%)
112
18
39
Plastic (Self-adhesive plates, sheets, films of plastics – 42%)
85
14
85
Electrical Machinery (Integrated circuits – 31%; Printed circuits –
15%; Electric apparatus for line telephony – 10%)
53
8
02
Meat (Pork – 52%; Beef – 23%; Pork offals – 21%)
42
7
59
Impregnated Text Fabrics (Textile hosepiping and similar textile
tubing – 91%)
29
5
23
Food Waste; Animal Feed (Beet pulp – 54%; Animal feed
preparations – 25%)
17
3
68
Stone, Plaster, Cement
15
2
38
Miscellaneous Chemical Products
14
2
29
Organic Chemicals
13
2
Total for Top 10 Exports
$507
81%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
31
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Mississippi
In 2010, Mississippi shipped about $70 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and less than 1% of
the state’s total exports to the world. The top 10 products accounted for 92% of Mississippi’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: tanning, dye, paint, putty; electrical machinery
(including electrical apparatus for line telephony and integrated circuits; machinery
(especially computers and components and pumps, fans, and hoods); poultry; rubber;
optical and medical instruments; woodpulp; plastic; cotton; and miscellaneous
chemical products.
Mississippi’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$72
100%
32
Tanning, Dye, Paint, Putty
35
48
85
Electrical Machinery (Electric apparatus for line telephony –
36%; Integrated circuits – 26%)
11
16
84
Machinery (Computers and components – 36%; Air or vacuum
pumps, compressors, fans, and hoods – 33%)
5
7
02
Meat (Poultry – 97%)
5
7
40
Rubber
4
5
90
Optical/Medical Instruments
2
3
47
Woodpulp
1
2
39
Plastic (Polymers of styrene in primary forms – 75%)
1
2
52
Cotton/Yarn/Fabric (Cotton – 100%)
1
2
38
Miscellaneous Chemical Products
1
1
Total for 10 Exports
$67
92%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
32
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Missouri
In 2010, Missouri shipped more than $650 million in goods to South Korea, according to the
Census Bureau. This represented 2% of all U.S. exports to South Korea, and 5% of the state’s
total exports to the world. The top 10 products accounted for 87% of Missouri’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: aircraft and spacecraft parts and vehicles; medical
instruments; meat (especially pork); machinery; pharmaceutical products; ores;
electrical machinery; and miscellaneous chemical products.
•
Net exports could decline in solid fuels from coal.
•
Export change in one industry is not estimated in the USITC study: military apparel
and equipment.
•
According to CRS estimates detailed in Appendix C, data underestimate both
manufacturing and agricultural exports from Missouri by at least 25%.
Missouri’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$656
100%
88
Aircraft, Spacecraft (Aircraft, spacecraft and balloon parts –
53%; Powered aircraft, spacecraft and launch vehicles –
46%)
354
54
98
Special Other (Exports of military apparel and military
equipment – 98%)
53
8
90
Optical/Medical Instruments (Oscilloscopes, spectrum
analyzers and parts – 38%)
32
5
02
Meat (Pork – 92%; Beef – 4%)
28
4
84
Machinery (Hand tools – 20%; Air or vacuum pumps –
12%; Ship’s derricks, cranes, and mobile lifting frames – 9%)
26
4
30
Pharmaceutical Products (Human blood, animal blood, and
vaccines – 96%)
19
3
26
Ores, Slag, Ash (Zinc ores and concentrates – 99.8%)
19
3
85
Electrical Machinery (Parts for television, radio and radar
apparatus – 29%; Electrical water, space & soil heaters –
13%)
17
3
38
Miscellaneous Chemical Products (Composite
diagnostic/lab reagents – 64%)
14
2
27
Mineral Fuel, Oil Etc. (Solid fuels from coal–98%)
12
2
Total for Top 10 Exports
$573
87%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
33
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Montana
In 2010, Montana shipped $187 million in goods to South Korea, according to the Census
Bureau. This represented 0.5% of all U.S. exports to South Korea, and 13% of the state’s total
exports to the world. The top 10 products accounted for nearly 100% of Montana’s total exports
to South Korea. By the end of the KORUS FTA implementation period, based on USITC’s
analysis:
•
Net exports could increase in: inorganic chemicals; machinery (semiconductor
manufacturing equipment); electrical machinery (insulated wire and optical sheath
fiber cables); optical medical instruments (liquid crystal decides and lasers); civilian
aircraft engines and parts; and salt, sulfur, earth, and stone; pharmaceutical products.
•
Net exports could decline in solid fuels from coal.
•
Exports in one industry are not estimated in the USITC study: repaired military
products.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Montana by at least 25%. A substantial portion of the state’s agricultural
production is processed in neighboring states for export, or transported to port states
(i.e., Oregon and Washington) which record them as exports.
Montana’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$187
100%
27
Mineral Fuel, Oil (Solid fuels from coal – 100%)
81
43
28
Inorganic Chemicals; Rare Earth Metals
53
28
84
Machinery (Semiconductor manufacturing equipment – 99%)
44
24
85
Electrical Machinery (Insulated wire, optical sheath fiber cables –
97%)
6
3
90
Optical/Medical Instruments (Liquid crystal devices and lasers –
55%)
1
1
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 100%)
0.5
0.3
25
Salt; Sulfur; Earth, Stone
0.5
0.3
30
Pharmaceutical Products
0.3
0.2
70
Glass and Glassware
0.2
0.1
98
Special Other (Repaired military products – 100%)
0.2
0.1
Total for Top 10 Exports
$187
99.9%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
34
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Nebraska
In 2010, Nebraska shipped nearly $300 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 5% of the state’s total
exports to the world. The top 10 products accounted for 96% of Nebraska’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: beef; aluminum; various optical and medical
instruments; plastic; pharmaceutical products (blood and vaccines); machinery
(including transmission products); tomato products; and electrical machinery
(especially electrical apparatus.)
•
Net exports could decline in cattle hides and skins and wadding, felt, twine, and rope.
•
According to CRS estimates detailed in Appendix C, data underestimate both
manufactured and agricultural exports from Nebraska by at least 25%.
Nebraska’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$271
100%
02
Meat (Beef – 86%: Pork – 8%)
116
43
41
Hides and Skins (Cattle hides & skins – 100%)
102
38
76
Aluminum
14
5
90
Optical/Medical Instruments (Medical, surgical, dental, or
veterinary instruments – 32%)
6
2
39
Plastic (Polyethers, Expoxides and Polyesters – 96%)
5
2
56
Wadding, Felt, Twine, Rope
5
2
30
Pharmaceutical Products (Blood and vaccines – 88%)
4
2
84
Machinery (Transmission products – 43%)
3
1
20
Preserved Food (Tomato products – 95%)
2
1
85
Electrical Machinery (Electrical apparatus parts – 36%)
2
1
$260
96%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
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35
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Nevada
In 2010, Nevada shipped $40 million in goods to South Korea, according to the Census Bureau.
This represented less than 0.5% of all U.S. exports to South Korea, and nearly 1% of the state’s
total exports to the world. The top 10 products accounted for 88% of Nevada’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: medical instruments; machinery (especially pumps and
parts); electrical machinery (especially integrated circuits); photographic or
cinematographic goods; base metals (titanium); inorganic chemicals; mineral water,
and civilian aircraft engine equipment and parts.
•
Exports could decline in mineral fuel from coal tar..
•
Exports in one industry are not estimated in the USITC study: repaired military
products.
•
According to CRS estimates detailed in Appendix C, data overestimate
manufacturing exports from Nevada by at least 25%.
Nevada’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$41
100%
90
Optical/Medical Instruments
11
27
84
Machinery (Pumps for liquids, liquid elevators, and parts -- 76%)
9
22
85
Electrical Machinery (Integrated circuits – 55%)
9
21
37
Photographic Or Cinematographic Goods
2
5
81
Other Base Metals (Titanium – 100%)
1,
4
28
Inorganic Chemicals; Rare Earth Metals
1
3
98
Special Other (Repaired military products – 100%)
1
2
27
Mineral Fuel, Oil (from coal tar)
1
2
22
Beverages (Mineral water – 100%)
1
2
88
Aircraft, Spacecraft (civilian aircraft engine equipment and parts)
1
2
Total for Top 10 Exports
$36
88%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
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36
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
New Hampshire
In 2010, New Hampshire shipped $131 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and 3% of the state’s
total exports to the world. The top 10 products accounted for 98% of New Hampshire’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase: machinery (including various types of pumps); electrical
machinery (especially industrial furnaces); optical and medical instruments; civilian
aircraft engines and parts; plastic; inorganic chemicals; tanning, dye, paint, and putty;
and aluminum.
•
Net exports could decline in iron and steel products.
•
According to CRS estimates detailed in Appendix C, data overestimate agricultural
exports from New Hampshire by at least 25%.
New Hampshire’s Top 10 Exports to South Korea, 2010
HTS
Chapter
Product
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$131
100%
84
Machinery (Pumps for liquids, liquid elevators and parts –
40%)
87
66
85
Electrical Machinery (industrial furnaces–49%)
28
22
90
Optical/Medical Instruments
5
4
70
Glass and Glassware (Glass fibers – 79%)
2
1
88
Aircraft, Spacecraft (Civilian aircraft, engines, and parts –
79%)
2
1
39
Plastic (Self-adhesive plates, sheets, and film – 36%)
1
1
28
Inorganic Chemicals; Rare Earth Metals
1
1
32
Tanning, Dye, Paint, Putty
1
1
73
Iron/Steel Products (Screws, bolts, nuts and washers –-81%)
0.5
0.4
76
Aluminum
0.4
0.3
Total for Top 10 Exports
$128
98%
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
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37
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
New Jersey
In 2010, New Jersey shipped close to $1.7 billion in goods to South Korea, according to the
Census Bureau. This represented 4% of all U.S. exports to South Korea, and 5% of the state’s
total exports to the world. The top 10 products accounted for 83% of New Jersey’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: precious metals (platinum); machinery (semiconductor
manufacturing equipment); organic chemicals, electrical machinery (integrated
circuits); pharmaceutical products; miscellaneous chemical products; medical
instruments (orthopedic appliances and artificial body parts); inorganic chemicals and
rare earth elements; and iron and steel scrap.
•
Exports in one category: arms and ammunition, are not addressed in the USITC
study.
•
According to CRS estimates detailed in Appendix C, data overestimate both
manufacturing and agricultural exports from New Jersey by at least 25%.
New Jersey’s Top 10 Exports to South Korea, 2010
HTS
Chapter
Product
Total Exports
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
$1,666
100%
71
Precious Stones, Metals (Platinum – 89%)
369
22
84
Machinery (Semiconductor manufacturing equipment – 68%)
200
12
29
Organic Chemicals
189
11
93
Arms and Ammunition (Parts and accessories for arms – 95%)
180
11
85
Electrical Machinery (Integrated circuits – 43%; Other electric
machines and parts – 17%; Storage batteries – 6%)
127
8
30
Pharmaceutical Products
100
6
38
Miscellaneous Chemical Products
71
4
90
Optical/Medical Instruments (Orthopedic appliances and
artificial body parts, hearing aids – 25%)
68
4
28
Inorganic Chemicals; Rare Earth
50
3
72
Iron and Steel (Scrap – 90%)
37
2
Total for Top 10 Exports
$1,391
83%
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
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38
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
New Mexico
In 2010, New Mexico shipped $28 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and nearly 2% of the
state’s total exports to the world. The top 10 products accounted for 92% of New Mexico’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: civilian aircraft engines and parts; machinery
(especially taps, cocks and valves for pipes and semiconductor manufacturing
equipment); cotton; dairy products (cheese and whey); electrical machinery
(especially semiconductor devices, electric apparatus for switching, and electric
capacitors); cereal flour; miscellaneous chemical products; plastic; and optical and
medical instruments.
•
Exports could decline in articles of nickel.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from New Mexico by at least 25%.
New Mexico’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$28
100%
88
Aircraft, Spacecraft (Civilian aircraft engines and parts –
868%)
6
20
84
Machinery (Taps, cocks, values for pipes – 56%;
Semiconductor manufacturing equipment – 26%)
5
20
52
Cotton/Yarn/Fabric (Cotton – 100%)
5
17
04
Dairy, Eggs, Honey (Cheese – 80%; Whey – 20%)
4
14
85
Electrical Machinery (Semiconductor devices – 26%; Electric
apparatus for switching – 13%; Electric capacitors – 8%)
2
7
75
Nickel/Articles Thereof
1
5
11
Milling; Malt; Starch (Cereal flour – 100%)
1
3
38
Miscellaneous Chemical Products
1
2
39
Plastic
1
2
90
Optical/Medical Instruments (Optical fiber – 29%)
1
2
Total for Top 10 Exports
$26
92%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
39
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
New York
In 2010, New York shipped nearly $2 billion in goods to South Korea, according to the Census
Bureau. This represented 5% of all U.S. exports to South Korea, and nearly 3% of the state’s total
exports to the world. The top 10 products accounted for 82% of New York’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: machinery (semiconductor manufacturing equipment);
civilian aircraft engines and parts; electrical machinery (integrated circuits); optical
and medical instruments; miscellaneous chemical products; plastics; and wood pulp.
•
Exports in three categories: repaired military products, arms and ammunition, and art
and antiques, are not addressed in the USITC study.
•
According to CRS estimates detailed in Appendix C, data overestimate both
manufacturing and agricultural exports from New York by at least 25%.
New York’s Top 10 Exports to South Korea, 2010
HTS
Chapter
Product
Total Exports
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
$1,992
100%
84
Machinery (Semiconductor manufacturing equipment – 33%)
451
23
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 63%)
303
15
98
Special Other (Repaired products – 23%)
210
11
93
Arms and Ammunition (Bombs, grenades, cartridges, and parts –
99.9%)
189
9
85
Electrical Machinery (Integrated circuits – 16%)
152
8
97
Art and Antiques (Paintings and drawings – 78%)
137
7
90
Optical, Medical Instruments
90
5
38
Miscellaneous Chemical Products
45
2
39
Plastic (Polyethers, Epoxides & Polyesters, Primary Forms – 25%)
34
2
47
Woodpulp (Waste and scrap of paper – 64%)
33
2
$1,644
82%
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
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40
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
North Carolina
In 2010, North Carolina shipped more than $600 million in goods to South Korea, according to
the Census Bureau. This represented 2% of all U.S. exports to South Korea, and more than 2% of
the state’s total exports to the world. The top 10 products accounted for 82% of North Carolina’s
total exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: machinery (including engines and air and vacuum
pumps); electrical machinery (especially integrated circuits and semiconductor
devices); plastic; precious stones with precious metals; pharmaceutical products;
meat (especially pork); woodpulp; and tobacco.
•
Net exports could decline in synthetic filament yarn and motor vehicles, parts and
accessories.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from North Carolina by at least 25%.
North Carolina’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
Total Exports
$606
100%
84
Machinery (Compression ignition internal combustion piston
engines – 19%; Air and vacuum pumps -- 6%)
137
23
85
Electrical Machinery (Integrated circuits – 42%; semiconductor
devices – 32%; electric apparatus for line telephony – 10%)
119
20
39
Plastic (Polymers of vinyl acetate – 56%)
51
8
71
Precious Stones, Metals (with Precious metals – 98%)
43
7
30
Pharmaceutical Products
32
5
02
Meat (Pork – 64%; Poultry products – 36%)
27
4
47
Woodpulp
26
4
54
Manmade Filament, Fabric (Synthetic filament yarn – 88%)
21
3
87
Vehicles, Not Railway (Motor vehicle parts and accessories –
88%)
19
3
24
Tobacco (Unmanufactured – 99%)
18
3
Total for Top10 Exports
$494
82%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
41
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
North Dakota
In 2010, North Dakota shipped $11 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and less than 1% of
the state’s total exports to the world. The top 10 products accounted for 97% of North Dakota’s
total exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: machinery (self-propelled bulldozers, graders, and
scrapers); soybeans; edible fruit and nuts, electrical machinery (line telegraph
equipment); organic chemicals, prepared sausage; and dried peas.
•
Net exports could decline in passenger vehicles, possibly increase in tractors; and
stay about the same in wheat and wheat flour.
•
According to CRS estimates detailed in Appendix C, data underestimate
manufacturing and agricultural exports from North Dakota by at least 25%.
North Dakota’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Share of
Total State
Exports to
S. Korea
Total Exports
$11
100%
84
Machinery (Self-propelled bulldozers, graders, scrapers – 84%)
9
80
10
Cereals (Wheat – 95%)
0.4
4
12
Misc Grain, Seed, Fruit (Soybeans – 72%)
0.4
4
11
Milling; Malt; Starch (Wheat flour – 100%)
0.4
3
87
Vehicles, Not Railway (Tractors–65%, Passenger vehicles–10%)
0.2
1
08
Edible Fruit and Nuts
0.1
1
85
Electrical Machinery (Line telephone equipment–96%)
0.1
1
29
Organic Chemicals
0.08
1
16
Prepared Meat, Fish (Sausage – 100%)
0.08
1
07
Vegetables (Dried peas – 100%)
0.07
1
Total for 10 Exports
$11
97%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
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42
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Ohio
In 2010, Ohio shipped nearly $650 million in goods to South Korea, according to the Census
Bureau. This represented 2% of all U.S. exports to South Korea, and close to 2% of the state’s
total exports to the world. The top 10 products accounted for 76% of Ohio’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: machinery; electrical machinery; medical instruments;
base metals; chemical products; plastic; tanning, dye, painting and putty products,
and organic chemicals.
•
Net exports could decline in, passenger cars, parts, and accessories; and possibly
increase in armored fight vehicles and parts;
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Ohio by at least 25%.
Ohio’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$640
100%
84
Machinery (Turbojets, turbopropellers & other gas turbines and parts
– 26%; Air or vacuum pumps, compressors and fans – 16%)
172
27
85
Electrical Machinery (Miscellaneous parts– 29%)
70
11
90
Optical/Medical Instruments (X-ray apparatus, tubes, panels,
screens, and parts – 34%; Oscilloscopes, spectrum analyzers and parts
– 18%)
65
10
70
Glass and Glassware
40
6
81
Other Base Metals (Molybdenum – 97%)
33
5
38
Miscellaneous. Chemical Products (Antiknock preparations & other
additives for mineral oils – 32%)
29
5
39
Plastic
24
4
87
Vehicles, Not Railway (Passenger cars – 69%; motor vehicle parts
and accessories – 18%; Tanks and other armored fight vehicles and
parts – 5%)
18
3
32
Tanning, Dye, Paint, Putty
17
3
HTS
Chapter
29
Product
Organic Chemicals (Phenols – 35%)
17
3
Total for Top 10 Exports
$485
76%
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
43
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Oklahoma
In 2010, Oklahoma shipped $58 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and about 1% of the
state’s total exports to the world. The top 10 products accounted for 93% of Oklahoma’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: machinery (especially gas turbines and pumps); cotton,
medical instruments; civilian aircraft engines and parts; meat (pork); glue-like
substances; miscellaneous chemical products; books, newspapers, and manuscripts;
•
Net exports could decline in iron and steel products.
•
According to CRS estimates detailed in Appendix C, data underestimate both
manufacturing and agricultural exports from Oklahoma by at least 25%.
Oklahoma’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$58
100%
84
Machinery (Gas turbines – 35%; Pumps for liquids, liquid elevators,
and parts -- 21%)
15
26
85
Electrical Machinery (Electric motors and generators – 39%)
12
21
52
Cotton+Yarn, Fabric (Uncarded Cotton – 100%)
7
12
90
Optical/Medical Instruments (Medical, surgical, dental or
veterinary instruments – 58%)
6
10
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 95%)
4
6
02
Meat (Pork – 100%)
3
5
35
Albuminoidal Substances; Modified Starch; Glue; Enzymes
3
5
38
Miscellaneous Chemical Products
2
4
49
Book+Newspapers; Manuscript
1
2
73
Iron/Steel Products
1
2
Total for Top 10 Exports
$53
93%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
44
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Oregon
In 2010, Oregon shipped close to $1 billion in goods to South Korea, according to the Census
Bureau. This represented 2% of all U.S. exports to South Korea, and 5% of the state’s total
exports to the world. The top 10 products accounted for 89% of Oregon’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: fertilizers; machinery (semiconductor manufacturing
equipment); electrical machinery (integrated circuits and semiconductor devices);
forage products; ferrous waste and scrap; medical instruments; aluminum waste and
scrap; preserved food (processed potato products); and paper and paperboard.
•
Net exports could stay the same in wheat.
•
According to CRS estimates detailed in Appendix C, data overestimate agricultural
exports from Oregon by at least 25%.
Oregon’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
Total Exports
$937
100%
10
Cereals (Wheat – 99.8%)
289
31
31
Fertilizers
122
13
84
Machinery (Semiconductor manufacturing equipment – 74%)
100
11
85
Electrical Machinery (Integrated circuits – 73%; Semiconductor
devices – 13%)
83
91
12
Misc Grain, Seed, Fruit (Forage products, incl. hay and alfalfa –
73%; Seeds – 16%)
75
8
72
Iron and Steel (Ferrous waste and scrap – 99%)
67
7
90
Optical/ Medical Instruments (Oscilloscopes, spectrum analyzers
and parts – 28%)
40
4
76
Aluminum (Waste & scrap – 99%)
22
2
20
Preserved Food (Processed potato products – 92%)
17
2
48
Paper, Paperboard
17
2
Total for Top 10 Exports
$833
89%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
45
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Pennsylvania
In 2010, Pennsylvania shipped close to $1 billion in goods to South Korea, according to the
Census Bureau. This represented 2% of all U.S. exports to South Korea, and more than 2% of the
state’s total exports to the world. The top 10 products accounted for 70% of Pennsylvania’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: machinery (especially metal rolling mills computers,
and components); medical instruments; various types of electrical machinery;
inorganic chemicals; iron and steel; plastic, soap wax; cocoa; and miscellaneous
chemical products.
•
Net exports could decline in solid fuels from coal.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Pennsylvania by at least 25%.
Pennsylvania’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$792
100%
27
Mineral Fuel, Oil (Solid fuels from coal – 97%)
119
15
84
Machinery (Metal rolling mills – 13%; Computers & components –
13%)
101
13
90
Optical/Medical Instruments (Hydrometers, thermometers,
pyrometers – 18%)
69
9
85
Electrical Machinery (Semiconductor devices – 15%; Adaptive
power supplies and parts – 15%; Electric motor/generators and
parts – 10%)
64
8
28
Inorganic Chemicals; Rare Earth Metals (Halides & halide oxides
of nonmetals – 68%)
46
6
72
Iron and Steel (Ferrous waste and scrap – 41%)
39
5
39
Plastic
38
5
34
Soap, Wax, Dental Preparation
26
3
18
Cocoa (Chocolate products – 99%)
25
3
38
Miscellaneous Chemical Products
23
3
Total for Top 10 Exports
$550
70%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
46
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Rhode Island
In 2010, Rhode Island shipped $17 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and close to 1% of
the state’s total exports to the world. The top 10 products accounted for 93% of Rhode Island’s
total exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: machinery; optical and medical instruments; articles of
silver; plastic; electrical machinery; soap, wax; fish and seafood (especially frozen
eels); and woodpulp.
•
Net exports could decline in wadding, felt, twine, and rope; and iron and steel
products.
•
According to CRS estimates detailed in Appendix C, data underestimate both
manufacturing and agricultural exports from Rhode Island by at least 25%.
Rhode Island’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$17
100%
84
Machinery (Ship’s derricks, cranes, mobile lifting frames – 33%)
4
26
90
Optical/Medical Instruments
4
26
71
Precious Stones, Metals (Silver –92%)
2
12
39
Plastic (Plates, sheets, film – 49%)
1
7
85
Electrical Machinery (Electric, laser, or other light or photon
beams – 26%)
1
6
56
Wadding, Felt, Twine, Rope
1
5
34
Soap, Wax, Etc; Dental Preparations
1
4
03
Fish and Seafood (Frozen eels – 66%)
1
3
73
Iron/Steel Products
0.4
2
47
Woodpulp (Waste and scrap of paper or paperboard – 100%)
0.3
2
Total for Top 10 Exports
$15
93%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
47
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
South Carolina
In 2010, South Carolina shipped nearly $400 million in goods to South Korea, according to the
Census Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 2% of the
state’s total exports to the world. The top 10 products accounted for 86% of South Carolina’s total
exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in; medical instruments (orthopedic appliances, artificial
joints); woodpulp; machinery (especially roller bearings and parts and computers and
components); paper and paperboard; plastic; pharmaceutical products; rubber
(especially tires); organic chemicals; and miscellaneous chemical products.
•
Net exports could decline in vehicles (motor vehicle parts and accessories; and
passenger cars).
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from South Carolina by at least 25%.
South Carolina’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$379
100%
87
Vehicles, Not Railway (Motor vehicle parts and accessories
– 57%; passenger cars – 40%)
132
35
90
Optical/Medical Instruments (Orthopedic appliances,
especially artificial joints – 45%)
65
17
47
Woodpulp
39
10
84
Machinery (Ball or roller bearings and parts – 18%;
Computers and components – 11%)
27
7
48
Paper, Paperboard
13
4
39
Plastic
13
3
30
Pharmaceutical Products
11
3
40
Rubber (New pneumatic tires – 84%)
9
2
29
Organic Chemicals
9
2
38
Miscellaneous Chemical Products
8
2
$326
86%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
48
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
South Dakota
In 2010, South Dakota shipped $13 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and 1% of the state’s
total exports to the world. The top 10 products accounted for 98% of South Dakota’s total exports
to South Korea. By the end of the KORUS FTA implementation period, based on USITC’s
analysis:
•
Net exports could increase in: meat pork; toys and sports equipment (arcade tables);
machinery (self-propelled bulldozers, graders, and scrapers); salt, sulfur, earth and
stone; organic chemicals; dairy (cheese and curd); explosives (fireworks and signal
flares); electrical machinery (especially semiconductors); and glazier’s putty.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from South Dakota by at least 25%.
South Dakota’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Share of
Total State
Exports to
S. Korea
Total Exports
$13
100%
02
Meat (Pork – 99.9%)
4
29
95
Toys and Sports Equipment (Arcade tables – 100%)
3
21
84
Machinery (Self-propelled bulldozers, graders, scrapers – 68%)
2
15
25
Salt; Sulfur; Earth, Stone
1,
11
29
Organic Chemicals
1
8
04
Dairy, Eggs, Honey (Whey–51%, Cheese and curd – 49%)
1
5
94
Furniture and Bedding (Medical/surgical furniture and bedding –
100%)
0.5
4
36
Explosives (Fireworks and signal flares – 100%)
0.4
3
85
Electrical Machinery (Semiconductors – 46%)
0.2
2
32
Tanning, Dye, Paint, Putty (Glazier’s putty –100%)
0.1
1
Total for 10 Exports
$13
98%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
49
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Tennessee
In 2010, Tennessee shipped over $550 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and more than 2% of the state’s
total exports to the world. The top 10 products accounted for 81% of Tennessee’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: medical instruments; plastic, tanning, dye and putty;
machinery (including computers, components, and parts for engines); woodpulp;
electrical machinery; meat (chicken); and pig iron.
•
Net exports could decline in vehicles (especially passenger cars and motor vehicle
parts and accessories); and artificial filament yarn.
•
According to CRS estimates detailed in Appendix C, data underestimate
manufacturing exports from Tennessee by at least 25%.
Tennessee’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to S.
Korea
Total Exports
$557
100%
87
Vehicles, Not Railway (Passenger cars – 58%; motor vehicle
parts and accessories – 41%)
88
16
90
Optical/Medical Instruments (Medical, surgical, dental or
veterinary instruments – 64%; orthopedic appliance, artificial
body parts, hearing aids – 29%)
87
16
39
Plastic (Cellulose and chemical derivatives – 78%)
68
12
54
Manmade Filament, Fabric (Artificial filament yarn – 90%)
58
10
32
Tanning, Dye, Paint, Putty
44
8
84
Machinery (Computers and components – 18%; Parts for
engines – 14%)
28
5
47
Woodpulp
21
4
85
Electrical Machinery (Electrical apparatus for switching –
23%; electrical apparatus for line telephony – 20%)
20
4
02
Meat (Chicken products – 99%)
19
3
72
Iron and Steel (Pig iron – 99.8%)
16
3
Total for Top 10 Exports
$449
81%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
50
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Texas
In 2010, Texas shipped more than $6.4 billion in goods to South Korea, according to the Census
Bureau. This represented 17% of all U.S. exports to South Korea, and 3% of the state’s total
exports to the world. The top 10 products accounted for 91% of Texas’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: machinery (semiconductor manufacturing equipment
and machinery parts); electrical machinery (semiconductor devices and integrated
circuits); organic chemicals; plastic; miscellaneous chemical products; medical
instruments; and cotton.
•
Net exports could decline in mineral fuel oil (from coal tar); and iron and steel
products.
•
According to CRS estimates detailed in Appendix C, data overestimate both
manufacturing and agricultural exports from Texas by at least 25%.
Texas’ Top 10 Exports to South Korea, 2010
HTS
Chapter
Product
Product’s
Share of
Export
Total State
Value Exports to S.
(in $mil)
Korea
Total Exports
6,447
100%
84
Machinery (Semiconductor manufacturing equipment – 39%; Machinery
parts – 33%)
2,041
32
85
Electrical Machinery (Semiconductor devices – 71%; Integrated circuits –
8%)
1,307
20
29
Organic Chemicals
1,257
20
27
Mineral Fuel, Oil (Oils from high temperature coal tar – 81%; Oil (not
crude) – 14%)
414
6
39
Plastic (Polyethers, epoxides & polyesters, primary forms – 41%)
218
3
38
Miscellaneous Chemical Products
152
2
73
Iron/Steel Products (Seamless tubes and pipes – 46%)
135
2
02
Meat (Beef – 93%; Beef offals – 4%; Pork – 2%)
121
2
90
Medical Instruments (Oscilloscopes, spectrum analyzers and parts –
18%)
118
2
52
Cotton + Yarn, Fabric (Cotton not carded – 99.8%)
86
1
5,848
91%
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
51
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Utah
In 2010, Utah shipped nearly $300 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and 2% of the state’s total
exports to the world. The top 10 products accounted for 86% of Utah’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: electrical machinery (integrated circuits); beauty
products; miscellaneous food preparations; base metals (zirconium); optical/medical
instruments including catheters and X-ray equipment); ores, fruit and vegetable
juices; and soap, wax, and dental preparations.
•
Net exports could decline in iron and steel products and motor vehicle parts and
accessories.
•
According to CRS estimates detailed in Appendix C, data overestimate
manufactured exports from Utah by at least 25%.
Utah’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$273
100%
85
Electrical Machinery (Integrated circuits – 87%)
93
34
33
Perfumery, Cosmetic (Miscellaneous beauty products)
48
17
73
Iron/Steel Products (Pipes for oil gas pipelines)
21
8
21
Miscellaneous Food (Food preparations – 91%)
19
7
81
Other Base Metals (Zirconium – 100%)
16
6
90
Optical/Medical Instruments (including Catheters – 30%; X-ray apparatus – 27%)
9
3
26
Ores, Slag, Ash (Precious Metal Ores and Concentrates –
100%)
9
3
20
Preserved Food (Fruit and vegetable juices – 100%)
7
3
87
Vehicles, Not Railway (Motor vehicle parts and accessories –
97%)
7
3
34
Soap, Wax; Dental Preparations
7
2
Total for Top 10 Exports
$236
86%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
52
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Vermont
In 2010, Vermont shipped $130 million in goods to South Korea, according to the Census Bureau.
This represented less than 0.5% of all U.S. exports to South Korea, and 3% of the state’s total
exports to the world. The top 10 products accounted for 99% of Vermont’s total exports to South
Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: electrical machinery (especially integrated circuits);
paper and paperboard; optical and medical instruments; machinery (especially
semiconductor manufacturing equipment); dairy products (cheese and whey); and
copper.
•
Net exports could decline in wadding felt, twine and rope; and iron and steel products
(stove elements).
•
Exports in one industry are not estimated in the USITC study: arms and ammunition.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Vermont by at least 25%.
Vermont’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$130
100%
85
Electrical Machinery (Integrated circuits – 50%)
116
89
48
Paper, Paperboard
4
3
90
Optical/Medical Instruments
4
3
84
Machinery (Semiconductor manufacturing equipment – 40%)
2
1
56
Wadding, Felt, Twine, Rope
1
1
04
Dairy, Eggs, Honey (Cheese – 90%; Whey – 9%)
1
0.5
74
Copper
1
0.4
93
Arms and Ammunition (Parts)
0.4
0.3
73
Iron/Steel Products (Stove elements –52%)
0.3
0.3
95
Toys and Sports Equipment (Pools – 78%)
0.3
0.2
Total for Top 10 Exports
$129
99%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
53
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Virginia
in 2010, Virginia shipped nearly $400 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and more than 2% of the state’s
total exports to the world. The top 10 products accounted for 87% of Virginia’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: electrical machinery (especially integrated circuits,
electric motors and generators); machinery (including machine tools); plastic; paper
and paperboard; beauty products; optical and medical instruments; iron and steel
(rolled), and meat (especially poultry).
•
Net exports could decline in solid fuel from coal and manmade staple fibers.
•
According to CRS estimates detailed in Appendix C, data overestimate agricultural
exports from Virginia by at least 25%.
Virginia’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$379
100%
85
Electrical Machinery (Integrated circuits – 53%; Electric
motors and generators – 21%; Insulated wire, optical sheath
fiber cables – 10%)
74
20
27
Mineral Fuel, Oil Etc (Solid fuels from coal – 100%)
65
17
84
Machinery (Machine tools – 30%; Taps, cocks, valves, etc,
for pipes – 12%)
50
13
39
Plastic
41
11
48
Paper, Paperboard
34
9
55
Manmade Staple Fibers
24
6
33
Perfumery, Cosmetic (Beauty products – 71%)
16
4
90
Optical/Medical Instruments (Oscilloscopes and spectrum
analyzers – 17%; Liquid crystal devices – 12%)
10
3
72
Iron and Steel (rolled)
9
2
02
Meat (Poultry – 61%; Pork – 38%)
8
2
$330
87%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
54
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Washington
In 2010, Washington shipped over $2.7 billion in goods to South Korea, according to the Census
Bureau. This represented 7% of all U.S. exports to South Korea, and 5% of the state’s total
exports to the world. The top 10 products accounted for 82% of Washington’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: corn; aircraft (civilian aircraft engines and parts);
wood; scrap iron; animal feed; forage products including hay and alfalfa; paper and
paperboard; machinery (computers and components); and electrical machinery
(integrated circuits).
•
Net exports could decline in mineral fuel oil.
•
According to CRS estimates detailed in Appendix C, data overestimate agricultural
exports from Washington by at least 25%.
Washington’s Top 10 Exports to South Korea, 2010
HTS
Chapter
Product
Total Exports
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
$2,719
100%
10
Cereals (Corn – 94%; Wheat – 6%)
832
31
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 89%)
799
29
44
Wood
117
4
27
Mineral Fuel, Oil (Oil (not crude) – 66%)
101
4
72
Iron and Steel (Ferrous waste & scrap – 96%)
77
3
23
Food Waste; Animal Feed (Soymeal – 62%; Distillers’ grains – 34%)
77
3
12
Misc. Grain, Seed, Fruit (Forage products, incl. hay and alfalfa – 98%)
72
3
48
Paper, Paperboard
54
2
84
Machinery (Computers and components – 41%; Semiconductor
manufacturing equipment – 14%)
53
2
85
Electrical Machinery (Integrated circuits – 27%)
52
2
$2,232
82%
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
55
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
West Virginia
In 2010, West Virginia shipped over $100 million in goods to South Korea, according to the
Census Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and less than
2% of the state’s total exports to the world. The top 10 products accounted for 91% of West
Virginia’s total exports to South Korea. By the end of the KORUS FTA implementation period,
based on USITC’s analysis:
•
Net exports could increase in: plastic; nickel (plates, sheets, strip and foil); organic
chemicals; soap, wax; ceramic products; aluminum (aluminum plates sheets, and
strip); woodpulp; and rubber.
•
Net exports in one industry could decline in mineral fuel (from coal) and iron and
steel products.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from West Virginia by at least 25%.
West Virginia’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$107
100%
39
Plastic (Primary forms of polyethers, expoxides and polyesters –
39%)
40
38
75
Nickel/Articles Thereof (Nickel Plates, Sheets, Strip and Foil –
78%)
17
15
29
Organic Chemicals
12
12
27
Mineral Fuel, Oil (Solid fuels from coal – 100%)
9
9
34
Soap, Wax, Dental Preparations
6
5
69
Ceramic Products (Refractory bricks – 53%)
3
3
76
Aluminum (Aluminum Plates, Sheets & Strip – 88%)
3
3
47
Woodpulp (Mechanical woodpulp – 100%)
3
2
40
Rubber (Synthetic rubber – 69%)
2
2
73
Iron/Steel Products
2
2
Total for Top 10 Exports
$97
91%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
56
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Wisconsin
In 2010, Wisconsin shipped $360 million in goods to South Korea, according to the Census
Bureau. This represented 1% of all U.S. exports to South Korea, and nearly 2% of the state’s total
exports to the world. The top 10 products accounted for 86% of Wisconsin’s total exports to
South Korea. By the end of the KORUS FTA implementation period, based on USITC’s analysis:
•
Net exports could increase in: machinery (especially computers and components,
refrigerators, freezers and heat pumps); medical instruments; electrical machinery
(especially for line telephones and electrical light equipment); meat (frozen beef);
preserved food (canned sweet corn); vehicles (parts and accessories for bicycles and
wheel chairs); dairy (whey and cheese); soybeans; and plastic.
•
Net exports could decline in raw cattle hides and skins and motor vehicle parts and
accessories.
•
According to CRS estimates detailed in Appendix C, data underestimate agricultural
exports from Wisconsin by at least 25%.
Wisconsin’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of Total
State Exports
to S. Korea
Total Exports
$360
100%
84
Machinery (Computers and components – 32%; Refrigerators,
freezers, heat pumps – 13%)
96
27
90
Optical/Medical Instruments (Medical, surgical, dental, or
veterinary instruments – 35%; X-ray apparatus – 25%)
72
20
85
Electrical Machinery (Electric apparatus for line telephony,
parts – 29%; Electrical light equipment – 15%)
45
12
41
Hides and Skins (Raw cattle hides & skins – 97%)
30
8
02
Meat (Beef, frozen – 91%)
23
6
20
Preserved Food (Canned sweet corn – 98%)
12
3
87
Vehicles, Not Railway (Parts and accessories for bicycles and
invalid carriages – 40%; Motor vehicle parts and accessories –
28%)
12
3
04
Dairy, Eggs, Honey (Whey – 62%; Cheese – 34%)
9
3
12
Misc Grain, Seed, Fruit (Soybeans – 94%)
6
2
39
Plastic
5
1
$311
86%
HTS
Chapter
Product
Total for Top 10 Exports
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
Congressional Research Service
57
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Wyoming
In 2010, Wyoming shipped nearly $40 million in goods to South Korea, according to the Census
Bureau. This represented less than 0.5% of all U.S. exports to South Korea, and nearly 4% of the
state’s total exports to the world. The top 10 products accounted for virtually 100% of Wyoming’s
total exports to South Korea. By the end of the KORUS FTA implementation period, based on
USITC’s analysis:
•
Net exports could increase in: inorganic chemicals; miscellaneous chemical products;
miscellaneous food (baking powders); optical instruments (optical telescopes); salt,
sulfur, earth and stone; forage products; plastic (silicone); and machinery (pumps and
fans).
•
Net exports could decline in iron and steel products.
•
According to CRS estimates detailed in Appendix C, data overestimate
manufacturing exports and underestimate agricultural exports from Wyoming by at
least 25%.
Wyoming’s Top 10 Exports to South Korea, 2010
Export
Value
(in $mil)
Product’s
Share of
Total State
Exports to
S. Korea
Total Exports
$39
100%
28
Inorganic Chemicals; Rare Earth Metals (Carbonates – 99%)
36
93
38
Miscellaneous Chemical Products
1
3
82
Tool, Cutlery, Of Base Metals
1
1
21
Miscellaneous Food (Baking powders – 100%)
0.5
1
90
Optical/Medical Instruments (Optical telescopes – 66%)
0.2
0.5
25
Salt; Sulfur; Earth, Stone
0.2
0.5
73
Iron/Steel Products
0.1
0.3
12
Misc Grain, Seed, Fruit (Forage products – 100%)
0.04
0.09
39
Plastic (Silicone – 100%)
0.02
0.05
84
Machinery (Air or vacuum pumps, compressors, and fans –
100%)
0.008
0.02
Total for 10 Exports
$39
99.9%
HTS
Chapter
Product
Source: For export data: Census data and Global Trade Atlas. See USITC estimates summarized in Table 4 for
list of sectors for which net exports at the national level (exports minus imports) are expected to increase or
decrease upon full implementation.
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58
Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Appendix B. Detailed U.S.-South Korea Trade Data
Table B-1. Top 25 U.S. Exports to South Korea, 2010
HTS
Chapter
Export Value
($millions)
Percent of Total
TOTAL All Products
$38,844
100%
84
Machinery; Reactors, Boilers (Machines and apparatus for the
manufacture of semiconductor devices – 40%; Machinery parts –
12%; Turbojets, turbopropellers and other gas turbines and parts
– 6%)
6,946
18
85
Electrical Machinery (Integrated circuits – 31%; Semiconductor
devices – 22%)
5,075
13
90
Optical, Medical Instruments (Instruments and appliances used in
veterinary, medical, dental, and other electro-medical apparatus –
18%; Oscilloscopes/spectrum analysers and other instruments –
15%)
2,660
7
88
Aircraft, Spacecraft (Civilian aircraft, engines and parts – 65%)
2,431
6
29
Organic Chemicals (Nitrile-function compounds – 23%; Cyclic
Hydrocarbons – 16%; Phenols – 9%)
2,153
6
10
Cereals (Corn – 77%; Wheat – 19%; Rice – 4%)
1,847
5
27
Mineral Fuel, Oil (Oils and other products of the distillation of
high temperature coal tar – 46%; Coal – 35%)
1,518
4
39
Plastic (Polyacetals, other polyethers, expoide resins,
polycarbonates in primary form – 17.5%; polyamides in primary
forms – 10%)
1,236
3
72
Iron and Steel (Ferrous waste and scrap – 90%)
1,146
3
98
Special Classification Provisions, Not elsewhere classified (Military
articles exported with intent to reimport)
1,025
3
87
Vehicles, Not Railway (Passenger cars – 44%; motor vehicle parts
and accessories – 35%; tank and other armored fighting vehicles
and parts – 8%)
814
2
38
Miscellaneous Chemical Products (Reaction initiators and
accelerators – 32%)
809
2
02
Meat (Beef – 63%; Pork – 21%; Poultry – 11%)
783
2
28
Inorganic Chemicals; Rare Earth Metals (Hydrogen, rare gases,
and other non-metals – 30%; Radioactive chemical elements and
isotopes, their compounds, mixtures and residues – 21%)
739
2
30
Pharmaceutical Products (Medicaments of mixed or unmixed
products for therapeutic or prophylactic uses – 45%; Human
blood/animal blood for therapeutic use – 42%)
644
2
93
Arms and Ammunition (Bombs, grenades, cartridges and parts –
59%; Parts and accessories of arms – 33%)
586
2
12
Miscellaneous Grain, Seed (Soybeans – 56%; Forage products –
34%; Seeds for sowing – 4%)
560
1
71
Precious Stones (Platinum – 68%;)
498
1
Product
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
HTS
Chapter
Product
Export Value
($millions)
Percent of Total
47
Woodpulp (Chemical woodpulp, soda or sulfate – 44%;
Recovered (waste and scrap) paper or paperboard – 43%)
423
1
41
Hides and Skins (Raw hides and skins of bovine or equine animals
– 95%; Bovine or equine leather – 8%)
410
1
76
Aluminum and Articles Thereof (Aluminum waste and scrap –
57%)
376
1
08
Edible Fruit and Nuts (Fresh oranges – 31%; Walnuts – 18%;
Almonds – 17%; Fresh cherries – 7%)
371
1
26
Ores, Slag, Ash (Zinc ores and concentrates – 43%; Lead ores and
concentrates – 24%; Precious metal ores and concentrates – 15%)
342
1
73
Iron and Steel Products (Tubes, pipes and hollow profiles – 23%;
Screws, bolts, nuts, washers – 15%)
312
1
23
Food Waste (Distillers grains for feed – 35%; Soybean meal – 31%)
292
1
$33,994
88%
SUB-TOTAL
Source: Global Trade Atlas (Census data).
Table B-2. Top 10 U.S. Imports from South Korea, 2010
Import
Value
($ millions)
Percent of
Total
TOTAL All Products
$48,860
100%
85
Electrical Machinery (Telephone sets and other apparatus for transmitting
and receiving of voice/ image/data – 57%; Integrated circuits – 18%)
15,269
31
84
Machinery; Reactors, Boilers (Parts and accessories for typewriters and
other office machines – 28%; Refrigerators and freezers – 10%; Washing
machines – 8%)
9,346
19
87
Vehicles, Not Railway (Passenger cars – 71%; Motor vehicle parts and
accessories – 28%)
9,258
19
27
Mineral Fuel, Oil (Oil (not crude) – 96%)
2,416
5
40
Rubber (Tires – 75%)
1,572
3
73
Iron and Steel Products (Tubes, pipes and hollow profiles of iron or steel –
53%)
1,540
3
39
Plastic (Plates, sheets, film of plastic – 21%; Plastic containers – 13%)
1,066
2
29
Organic Chemicals (Cyclic Hydrocarbons – 63%; Acyclic Hydrocarbons –
7%)
946
2
72
Iron and Steel (Flat-rolled products of iron – 33%)
893
2
90
Optical, Medical Instruments (Instruments and appliances used in
veterinary, medical, surgical, dental and other electro-medical apparatus –
24%; Liquid crystal devices/lasers – 11%)
845
2
$43,150
88%
HTS
Chapter
Product
SUB-TOTAL
Source: Global Trade Atlas (Census data).
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Appendix C. Trade Models and Data Issues
Trade Models
Trade models of the type used in the analysis of the KORUS FTA are part of a class of economic
models referred to as computable general equilibrium models (CGE) that incorporate data on
trade and a range of domestic economic variables on nearly 100 countries. As a result of this large
number of countries, and the vast amounts of data that are used, the models can provide important
insights into the mechanisms by which changes in tariffs or other parameters can affect a range of
countries. For practical reasons, however, the data in the models must be limited, so the models
necessarily must sacrifice some level of precision in their estimating abilities. Since such trade
models originally were developed with the intent of analyzing the economic effects of such multicountry trade agreements as the Uruguay Round, this lack of precision was not considered to be
an important drawback. However, this lack of precision may be an issue when the models are
used to estimate the effects of bilateral trade agreements, especially at the state level, where the
overall amount of trade and, therefore, the impact of the agreement, is expected to be less than
that of a comprehensive multilateral agreement. In addition, such models do not account for
changes in exchange rates, since such effects were considered to be neutral in a large multicountry trade agreement. Movements in exchange rates, however, could have an important impact
on trade patterns that involve countries that are parties to a bilateral trade agreement.
In addition, estimates derived from trade models represent a static analysis that does not represent
the dynamic effects that likely arise from trade agreements. In particular, the estimates are based
on the assumption that all other economic factors would remain constant during the time leading
to full implementation. The estimates also are based on the assumption that the composition of
trade between the United States and South Korea at the time the estimates were made, in this case
2001 data projected to 2008, would also remain constant. Considering the dynamic nature of both
economies, however, these assumptions appear to be unrealistic and may limit the usefulness of
the final results of the trade model. If the U.S. and South Korean economies continue to change
over the next decade at the rate experienced during the past decade, both economies and the
composition of trade between them likely will differ appreciably from what can be projected from
current data.
In order to mitigate some of the limitations of the trade model, USITC industry analysts refined
the estimates—that is, they prepared a qualitative assessment, of the potential impact of the
agreement at the industry level. These estimates provide an analysis of the immediate impact of
the agreement and of the phased elimination of tariffs and tariff rate quotas on 40 broadly-defined
industrial sectors and on a group of 20 narrowly defined industrial sectors and their sub-sectors.
Both of these groups of industries are used in this report to provide estimates of the impact of the
KORUS FTA on state-level industries.
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
State Export Data Issues10
As mentioned, this report uses Census Bureau data on the origin of movement of commodities by
state 11 to estimate exports to South Korea as a result of the KORUS FTA. The Census Bureau’s
Origin of Movement (OM) Data Series is compiled from the Electronic Export Information (EEI)
filed by exporters or their agents. The OM data series tracks exports from the zip code where their
documented transportation begins, not the origin of production, to the country of their foreign
destination. The data represent a shipment of one or more kinds of merchandise from one
exporter to one foreign importer on a single carrier. The state identified in the data is that from
which the final merchandise starts its journey. According to the Census Bureau, there are a
number of known limitations to the data.1 In particular, whenever shipments represent a
consolidation of goods, such as through warehouses, the state with the warehouse will be credited
with the exports, rather than the state of origin of the exports. This caveat is particularly relevant
to agricultural products shipped from inland states down the Mississippi River for export from the
port of New Orleans. In this case, New Orleans would be credited as the state of origin of the
exports. In addition, when goods are stored and then exported by central offices or intermediaries,
export data would understate exports from the original production state and overstate exports
from the office or consolidation point.
Generally speaking, the origin of movement (OM) data tend to overestimate exports from port
states such as California and New York and underestimate exports from such interior states as
Iowa, Missouri, and South Dakota. This miscounting is particularly prevalent when products are
either consolidated or stored by central offices or intermediaries before entering official export
channels. In such a case, the state-level export data do not provide a precise picture of the product
composition of exports from each state to the world or to individual countries such as South
Korea. Despite this limitation, these data provide the best available indication of what is produced
and exported from each state. 12
The issue of underestimation or overestimation is less of a problem among manufactured goods
than among agricultural products. For manufactured products, the origin of movement and the
origin of production often coincide. Typically, manufacturers ship their exports to a foreign
destination directly from the factory gate or from a nearby distribution facility. In these instances,
the state where the product is manufactured receives credit for the export. CRS estimates that OM
data underestimates manufacturing exports by 25% or more in 10 states and overestimates them
in 12 states, as shown in Table C-1. However, manufactured products from different states
sometimes are consolidated for export before shipment.13 When this occurs, the state-ofproduction-origin is lost. Instead, the state where these manufactured goods are consolidated
receives credit for the entire value of the export, even though those products were manufactured
in other states. In general, coastal states with large ports such as California, Texas, or New York
10
Information on the Census Bureau data was taken from U.S. Census Bureau, Foreign Trade Statistics, State Data
Series.
11
The legal authority for such collection and publication of U.S. foreign commerce and trade statistics is established by
Title 13, Chapter 9, and Title 18, Section 1905 of the U.S. Code, and by the regulatory mandate in Title 15, CFR, Part
30.90-30.91.
12
See also discussion in Andrew Cassey, “State Export Data: Origin of Movement vs. Origin of Production,” October
15, 2006, pp. 26-35, accessed at http://mpra.ub.uni-muenchen.de/3352/1/MPRA_paper_3352.pdf.
13
Census defines a shipment as “all merchandise sent from one seller of the commodity, or the United States principal
party of interest (USPPI) to one foreign consignee, to a single country of ultimate destination (the location of the
receiving party of interest), on a single carrier (by truck, railcar, ship, or airplane), on the same day.”
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
record higher exports because of these consolidated shipments, while inland states report lower
exports.14
Several other issues affect state-level trade statistics for manufactured goods. Value-added
considerations are not taken into account in recording state level exports. The OM data series
only reports the sales price and the state from which the completed/finished product is exported.
It does not capture value added by myriads of workers and businesses in states where
intermediate steps were taken toward the completion of complex manufactured export goods,
such as automobiles and aircraft –exports that are comprised of thousands of parts produced in
many different locations. As a result, the OM data seriously underestimates value added in many
states. See Table C-1 for a list of states whose exports are overestimated or underestimated by the
data series.
Accounting for agricultural exports by state, however, is particularly complicated. The Census
Bureau explicitly warns that the OM state export data tend to understate agricultural exports from
farm states and inflate agricultural exports from states with major ports that handle large volumes
of bulk agricultural commodities (e.g., grains, soybeans) and high-value shipments of processed
foods. By CRS calculations, OM data underestimate agricultural exports by at least 25% in more
than 28 states, and overestimate such exports by the same extent in 12 states.
Bulk agricultural products in particular are overwhelmingly sold in many interior states to
intermediaries,15 who ship them by barge or rail to major coastal ports to await export. Other
unprocessed agricultural products are produced in one state but sent to a warehouse in another
state, or to a facility for processing into a food or beverage product, before being exported. When
shipped, these products are not counted as exports of the state where the commodities were
produced but rather as exports from the state where they began to move to foreign markets. For
instance, corn and soybeans produced in Iowa, Missouri, and other Midwestern states are shipped
down the Mississippi River for consolidation at the elevators located in New Orleans. Also, a
food product produced in Idaho, and then shipped to a Washington wholesaler or freight
forwarder for sale abroad, could be credited as an export of Washington state instead of as a
export from Idaho under the OM state export data collection system.
14
15
Casey, op. cit., p. 27.
Intermediaries are also dominate in the exports of minerals and other bulk commodities.
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Table C-1. CRS Estimates of States for which Census Origin of Manufacturing (OM)
Trade Data Overestimate or Underestimate State Manufacturing or Agricultural
Exports by 25% or More
Manufacturing
Exports
Exports
Overestimated
Underestimated
(OM)
(UM)
Arizona
Alabama
California
Arkansas
Connecticut
Colorado
Florida
Iowa
Maryland
Kansas
Massachusetts
Missouri
Nevada
Nebraska
New Jersey
North Dakota
New York
Oklahoma
Texas
Rhode Island
Utah
Wyoming
Agriculture
Exports
Exports
Overestimated
Underestimated
(OA)
(UA)
Arizona
Arkansas
Connecticut
Idaho
Florida
Illinois
Louisiana
Indiana
Massachusetts
Iowa
New Hampshire
Kansas
New Jersey
Kentucky
New York
Maryland
Oregon
Michigan
Texas
Minnesota
Virginia
Missouri
Washington
Montana
Nebraska
New Mexico
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
Rhode Island
South Carolina
South Dakota
Vermont
West Virginia
Wyoming
Wisconsin
Source of Data: CRS calculations using methodology described below.
Notes on Agricultural Export Data: The overestimating and underestimating of U.S. agricultural exports by
state are derived by a comparison of two U.S. Government data series. The U.S. Department of Agriculture’s
(USDA) Foreign Agricultural Service disaggregates the U.S. State Export Data series compiled by the U.S. Census
Bureau to develop data showing agricultural exports by state (available at
http://www.fas.usda.gov/gats/default.aspx). This data series shows origin of movement, not where agricultural
products were harvested, raised, or processed. By contrast, USDA’s Economic Research Service (ERS) estimates
state agricultural exports using customs district-level export data compiled by the Census Bureau and State-level
agricultural production data from USDA’s National Agricultural Statistics Service. ERS derives state agricultural
export data based on each state’s share of the U.S. production of exported commodities. In other words, a
state’s share of the production of a commodity is applied to U.S. exports for the commodity to derive state
export value. Because the ERS data series is published on a fiscal year basis, CRS modified two fiscal years’ data
to derive a calendar year 2008 estimate to compare to the FAS 2008 data series compiled by Census.
Notes on Manufacturing Export Data: The overestimating and underestimating of U.S. manufacturing
exports by state are derived by comparing the exports from manufacturing establishments, widely considered to
be the best, though also flawed, data for origin of production for manufactured goods with the OM data. The
most recent exports as reported by manufacturers in the Census report are based on the 2008 Annual Survey of
Manufacturers. These Census statistics are disaggregated by industry sector on a North American Industry
Classification System (NAICS) basis, which is the preferred classification system for industry statistics, and state
of the manufacturer. The NAICS industry breakdown also allows for a direct comparison between the OM data
and the Exports from Manufacturing Establishments report. A comparison of 2008 data was undertaken to
identify those states where OM manufactured exports might have been overestimated (OA) and those where
they might have been underestimated (UA).
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Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects
Author Contact Information
(name redacted)
Specialist in International Trade and Finance
/redacted/@crs.loc.gov, 7-....
(name redacted)
Specialist in Agricultural Policy
/redacted/@crs.loc.gov, 7-....
(name redacted)
Specialist in International Trade and Finance
/redacted/@crs.loc.gov, 7-....
(name redacted)
Specialist in Industrial Organization and Business
/redacted/@crs.loc.gov, 7-....
Acknowledgments
Special thanks to the following for assistance on this report: (name redacted), (name redacted), (name
redacted), (name redacted), (name redacted), (name redacted), (name redacted), Sandra L.
Edwards and Amber H. Wilhelm.
Congressional Research Service
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