<html xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:st1="urn:schemas-microsoft-com:office:smarttags" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 11 (filtered medium)">
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="City"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="Street"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="address"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="country-region"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="place"/>
<!--[if !mso]>
<style>
st1\:*{behavior:url(#default#ieooui) }
</style>
<![endif]-->
<style>
<!--
/* Font Definitions */
@font-face
{font-family:"Trebuchet MS";
panose-1:2 11 6 3 2 2 2 2 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman";}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{color:purple;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal-compose;
font-family:"Trebuchet MS";
color:navy;
font-weight:normal;
font-style:normal;
text-decoration:none none;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.25in 1.0in 1.25in;}
div.Section1
{page:Section1;}
-->
</style>
</head>
<body lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><i><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy;font-style:italic'>‘Business
groups, disappointed that a trio of trade deals were set aside by the
Democratic Congress, were delighted by the news. “We were very
pleased,” said Doug Goudie, director of international trade for the
National Association of Manufacturers.’<o:p></o:p></span></font></i></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=4 color=navy face="Trebuchet MS"><span
style='font-size:14.0pt;font-family:"Trebuchet MS";color:navy;font-weight:bold'>South
Korean trade deal pits Obama against labor base<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>By Ian Swanson -
07/01/10 06:00 AM ET<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>http://thehill.com/homenews/administration/106607-south-korean-trade-deal-pits-obama-against-labor-<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>President Barack
Obama has angered unions by picking an election-year battle with organized
labor over trade.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Obama will seek
to complete the South Korean trade deal negotiated by the George W. Bush
administration in time for his November visit to <st1:City w:st="on">Seoul</st1:City>,
the White House announced toward the end of the G-20 meeting in <st1:City
w:st="on"><st1:place w:st="on">Toronto</st1:place></st1:City> this past
weekend.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>“We
don’t think it’s a good move economically or politically,”
said Thea Lee, a trade lobbyist for the AFL-CIO.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>The pact would
be the biggest <st1:country-region w:st="on">U.S.</st1:country-region> trade
deal since the North American Free Trade Agreement was signed with <st1:country-region
w:st="on">Canada</st1:country-region> and <st1:country-region w:st="on"><st1:place
w:st="on">Mexico</st1:place></st1:country-region>.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>The <st1:country-region
w:st="on">U.S.</st1:country-region> government estimates it would add $10
billion to $12 billion to <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
gross domestic product. It seeks to close what was a $10.6 billion trade
deficit with <st1:country-region w:st="on"><st1:place w:st="on">South Korea</st1:place></st1:country-region>
in 2009.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>The announcement
comes at a perilous time for the administration, which is grappling with a weak
recovery from the worst recession in decades.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Stocks on Wall
Street fell hundreds of points on Tuesday, reflecting uncertainty over
plummeting consumer confidence, and the administration is bracing for a new
jobs report on Friday that is expected to show the unemployment rate ticking
back up.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Exports are a
key part of Obama’s hopes of turning the economy around. He has pledged
to double <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
exports over the next decade as a means of creating new jobs.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Labor argues the
trade agreement will exacerbate problems in the <st1:country-region w:st="on">U.S.</st1:country-region>
economy and lead to the elimination of more <st1:country-region w:st="on"><st1:place
w:st="on">U.S.</st1:place></st1:country-region> manufacturing jobs.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Business groups,
disappointed that a trio of trade deals were set aside by the Democratic
Congress, were delighted by the news. “We were very pleased,” said
Doug Goudie, director of international trade for the National Association of
Manufacturers.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>The news on <st1:country-region
w:st="on"><st1:place w:st="on">South Korea</st1:place></st1:country-region>
surprised business and labor groups.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Both sides were
briefed by the Office of the U.S. Trade Representative in a hastily arranged
Saturday afternoon teleconference. Many lobbyists struggled to make the call,
which started after one hour’s notice and began just as the <st1:country-region
w:st="on">U.S.</st1:country-region> and <st1:country-region w:st="on"><st1:place
w:st="on">Ghana</st1:place></st1:country-region> entered extra time in the
World Cup.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>The South Korean
trade agreement was signed in 2007 and has languished since Obama took office
because of opposition not only from labor unions, but from the Ford Motor Co.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Ford and the
United Autoworkers argue South Korean non-tariff barriers have blocked most
trade in <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
vehicles, and that the deal negotiated by the Bush administration does little
to change this.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>The groups have
a strong ally in Rep. Sandy Levin, the chairman of the <st1:Street w:st="on"><st1:address
w:st="on">House Ways</st1:address></st1:Street> and Means Committee.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>Levin is a
Michigan Democrat put in charge of trade by Speaker Nancy Pelosi (D-Calif.)
before he became chairman. On Saturday, he blasted the Korean deal for not
addressing regulatory and tax barriers that have led to one-way trade with <st1:country-region
w:st="on">South Korea</st1:country-region> and hurt the <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> industrial
sector.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'>“Congress
expects to be consulted actively in these negotiations, and the date targeted
by the president can be met only if the outstanding issues are fully addressed
with enforceable commitments,” he said.<o:p></o:p></span></font></p>
</div>
</body>
</html>