Survey conducted by Korea International Trade Association (KITA) revealed that most of the small and medium sized exporters believe that Foreign Trade Agreement (FTA) between US and Korea would boost the Korean exports to the US.
60.3 percent of 418 companies hoped that abolition of tariffs would boost export to the US whereas 38.3 percent of the respondents were not expecting any increase.
111 companies had exported goods worth more than US $10 million yearly in 2004 and 2005 while the others exported less. Categories of exports include chemicals, plastics and leather, household goods, textiles, machinery and electronics with textile firms making up the majority of respondents with figures of 117.
The survey projects positive outlook despite the fact that some small and medium sized industry groups may suffer once the local market is opened to US goods.
The report clarifies that export might climbe to 24.5 percent a year while textile goods could in the short term climb to 27 percent and 36.6 percent in the mid to long run.
Those surveyed hoped that the tariff removal would enable them to raise prices of the product and would also increase profit margins. Report also pointed out the facts that the market share of European Companies in the US was 2.5 percent in the first half of the year which is a drop of 3.3 percent from 2000.
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