# Proposed U.S.-South Korea Free Trade Agreement: Potential National Sector-Specific and State Export Effects > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/crs%3AR41879 ## Record - **Collection:** Congressional research report - **Document type:** CRS Report - **Published:** June 20, 2011 - **Citation:** R41879 ## Text 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. Congressional Research Service 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 Congressional Research Service 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...) Congressional Research Service 1 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 $billions) with: Exports Imports Balance Source: Data for trade in goods: Global Trade Atlas. For trade in services: U.S. Department of Commerce, Bureau of Economic Analysis. Table 2 and Table 3 list key U.S. exports to and imports from South Korea, respectively. The products in the tables represent 88% of all U.S. exports to and imports from South Korea. Table 2 indicates that U.S. exports to South Korea are varied, with the top five such U.S. exports (...continued) especially at the state level where such data are not collected. See CRS Report RL33085, Trade in Services,: The Doha Development Agenda Negotiations and U.S. Goals, by (name redacted). Congressional Research Service 2 Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects accounting for about 50% of all U.S. exports to South Korea. These categories are: machinery (e.g., for manufacturing semiconductor devices), electrical machinery (especially integrated circuits and semiconductor devices), medical instruments, civilian aircraft engines and parts, and organic chemicals. (For more export and import detail, see Table B-1.) Table 2. Top 25 U.S. Exports to South Korea, 2010 HTS Chapter Export Value ($ 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 $38,844 100% 84 Product Source: Global Trade Atlas (Census data). HTS: Harmonized Tariff Schedule. Table 3 shows that U.S. imports from South Korea are narrowly focused and more concentrated than are U.S. exports. Nearly 70% of all import categories are concentrated in three broad sectors. These are: electrical machinery (especially telephone sets and other apparatus for voice/image/data transmission), non-electrical machinery (especially parts and accessories for office machines, refrigerators and freezers, and washing machines), and motor vehicles (primarily passenger cars, parts, and accessories). (For more detail, see Table B-2.) Congressional Research Service 3 Proposed U.S.–South Korea Free Trade Agreement: Potential Sector-Specific Effects Table 3. Top 10 U.S. Imports from South Korea, 2010 HTS Chapter Product Import Value ($ 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). Congressional Research Service 4 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. Congressional Research Service 5 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. Congressional Research Service 6 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. Congressional Research Service 7 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. Congressional Research Service 8 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. Congressional Research Service 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. Congressional Research Service 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. Congressional Research Service 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. Congressional Research Service 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. Congressional Research Service 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. Congressional Research Service 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) [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3AR41879. Public record. Not legal advice.