ID :
211502
Thu, 10/06/2011 - 10:41
Auther :
Shortlink :
https://oananews.org//node/211502
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FTA to spur U.S. carmakers to buy more Korean parts: report
SEOUL, Oct. 6 (Yonhap) -- U.S. carmakers and component manufacturers are expected to buy more South Korean automotive parts once a bilateral free trade agreement (FTA) takes effect, a report showed Thursday.
Interviews with representatives from companies including General Motors (GM), Ford, Chrysler and Delphi indicated that U.S. companies plan to buy more South Korean parts once the FTA goes into effect, to take advantage of favorable duties, the Korea Trade-Investment Promotion Agency (KOTRA) report said.
The trade pact was signed in June 2007 and supplemented in December last year. President Barack Obama has since sent the pact to Congress with the aim of getting U.S. lawmakers to sign it before South Korean President Lee Myung-bak visits Washington next week.
South Korea's parliament has not yet signed the deal, although the ruling Grand National Party may push for its ratification within the month.
KOTRA said GM has hinted it may increase it parts purchases from South Korea to more than $1 billion worth from around $700 million at present.
The giant automaker said the target is part of its grander strategy of increasing parts procurement from the Asian-Pacific region from its current 16 percent to at least 30 percent of all demand by 2016.
The agency said Ford has also expressed interest in buying South Korean car parts, with executives forecasting imports rising by roughly 20 percent in the next 10 years.
Similar intentions were voiced by Chrysler sources, who claimed the FTA would allow the company to buy parts from up to 100 South Korea suppliers in 2013. Presently Chrysler buys from 70 South Korean parts makers.
Other companies such as Delphi and Aisin America, which lead the world in the production of automotive components, said a liberal trading arrangement could open new opportunities for South Korea auto parts manufacturers.
Aisin, which supplies parts mainly to Toyota's U.S. plants, said it is closely monitoring the FTA ratification process and will move to set up detailed purchase plans if the pact is passed by lawmakers from the two countries.
Interviews with representatives from companies including General Motors (GM), Ford, Chrysler and Delphi indicated that U.S. companies plan to buy more South Korean parts once the FTA goes into effect, to take advantage of favorable duties, the Korea Trade-Investment Promotion Agency (KOTRA) report said.
The trade pact was signed in June 2007 and supplemented in December last year. President Barack Obama has since sent the pact to Congress with the aim of getting U.S. lawmakers to sign it before South Korean President Lee Myung-bak visits Washington next week.
South Korea's parliament has not yet signed the deal, although the ruling Grand National Party may push for its ratification within the month.
KOTRA said GM has hinted it may increase it parts purchases from South Korea to more than $1 billion worth from around $700 million at present.
The giant automaker said the target is part of its grander strategy of increasing parts procurement from the Asian-Pacific region from its current 16 percent to at least 30 percent of all demand by 2016.
The agency said Ford has also expressed interest in buying South Korean car parts, with executives forecasting imports rising by roughly 20 percent in the next 10 years.
Similar intentions were voiced by Chrysler sources, who claimed the FTA would allow the company to buy parts from up to 100 South Korea suppliers in 2013. Presently Chrysler buys from 70 South Korean parts makers.
Other companies such as Delphi and Aisin America, which lead the world in the production of automotive components, said a liberal trading arrangement could open new opportunities for South Korea auto parts manufacturers.
Aisin, which supplies parts mainly to Toyota's U.S. plants, said it is closely monitoring the FTA ratification process and will move to set up detailed purchase plans if the pact is passed by lawmakers from the two countries.
