© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the TITLE MASTER SLIDE, delete the logo and replace it with this one. U.S. Trade Strategies and Global Opportunities to Access the U.S. Market

© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the MASTER SLIDE, delete the logo on the slide and replace it with this logo. n The Bush Administration continues to move forward to advance trade and free markets. By identifying barriers to trade, we can work with our trading partners, globally, regionally, and bilaterally, to eliminate them, while further liberalizing our market at home. This trade policy improves the economic well-being of Americans, advances freedom around the world, and promotes our nation's security.” n `` You know, people are disappointed. I'm disappointed. We worked very closely with our Chilean partners. We hoped for their support in a time that we felt was very important.'' U.S. Trade Representative Robert B. Zoellick.

© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the MASTER SLIDE, delete the logo on the slide and replace it with this logo. Outlook for U.S. Trade Strategies The Bush Administration has made public its intent to pursue trade agreements multilaterally, bilaterally and regionally. No longer will the entire focus of United States Trade Representative’s office be on the World Trade Organization as the sole outlet for global trade policy. This means that Zoellick and his team are looking at achieving their global goals--lowering tariff and non-tariff barriers, promoting market reform and leveraging policy reforms in the WTO-- very differently than previous U.S. administrations. The successes of NAFTA, AGOA and CBI have given hope that the US can make significant policy and market gains at little political or economic cost.

© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the MASTER SLIDE, delete the logo on the slide and replace it with this logo. Outlook for U.S. Trade Strategies (continued) We can also glean from recent events that it is not only a global strategy that is the basis for the Bush Administration’s trade decisions but other domestic and international policies goals as well. This was most obvious in the steel tariff decision and the Singapore FTA announcement. Such motivations will be evident in future trade policy events. Congress will also continue to play a key role in the policymaking system, despite the President having received Trade Promotion Authority only last year. Thus, we may see other FTA’s/preferences being announced that may not fit with the overall plan of USTR, but are political considerations based on Congressional request (a la Vietnam FTA).

© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the MASTER SLIDE, delete the logo on the slide and replace it with this logo. Trade with Korea and East Asia Despite the pronouncements made in recent weeks about Singapore and future trade agreements with East Asian countries, there does not seem to be motivation to aggressively move ahead on any FTA or even BITs with other East Asian countries, certainly not before the next Presidential elections. Korea, itself, has taken four years to negotiate a BIT, and certainly that is an indication of seriousness of an FTA negotiation. Many in the Administration and the Congress view the remaining regulatory and institutional challenges with Korea and other nations such as China and Japan to be long term projects, while other regions of the world present shorter opportunities for success.

© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the MASTER SLIDE, delete the logo on the slide and replace it with this logo. U. S. Trade Deals are Key Opportunities for Korean Manufacturing Firms The recent Korean-Chilean FTA, which is similar to an eventual US- Chilean FTA, is a model of what policies the Korean Government should pursue in the absence of a global trade agreement. But Korean companies can find equally good value by taking advantage of current and future U.S. FTAs and lesser trade preference programs. Since the agreements enacted to date are based only on country of origin rules and not ownership, Korean companies, especially textiles, apparel and light manufacturing can produce in these market and gain significant price advantage into the U.S. market. In addition, many of these markets are beginning to offer significant FDI programs in order to compete effectively with Asia-- recognizing that 2008 and the end of the MFA is quickly approaching. Also, with such a vast variety of products given duty and quota treatment, the diversity of companies that can participate is even more compelling.

© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the MASTER SLIDE, delete the logo on the slide and replace it with this logo. Immediate Opportunities and Future Prospects Africa: The African Growth and Opportunity Act is now in its second iteration and has presented important market advantage to African, U.S., Chinese and Taiwanese companies. Over 10,000 products are eligible for duty/quota free access until Caribbean Basin Initiative: Similar to Africa, except on textiles and apparel, CBI is set to expire in Central American FTA: By using CBI as a base, the Central Americans are pressuring the Administration and Congress to negotiate and approve a CAFTA, which in all practical terms will make AGOA and CBI moot. Chile, Vietnam, Haiti and Brazil: Bilateral FTA’s that will most likely be approved in the near term.

© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the MASTER SLIDE, delete the logo on the slide and replace it with this logo. What Can Korean Companies do to Improve its Competitive Advantage in this Environment In Washington, the Korean Government and its private sector counterparts should find ways to effectively support any trade policies that can benefit Korean exports to the U.S. market. Developing an outreach strategy on trade more generally, possibly even supporting some of the President’s policies, and speaking out on behalf of a few legislative initiatives that could prove helpful to U.S.-Korean relations and the relations of the specific country or region the legislation is aimed. Actively lobby for the passage of legislation that promotes bilateral, regional or global trade matters. Continue to pursue any and all ways to keep U.S.-Korean trade talks alive.

© FOLEY & LARDNER 2003 WHEN PRINTING IN BLACK & WHITE: Go to the MASTER SLIDE, delete the logo on the slide and replace it with this logo. Foley Can Help KITA Maximize its Trade Strategy Foley Lardner can help KITA broaden its capacity to implement trade programs that benefit Korean companies worldwide; Our experience in lobbying Congress and the Executive Branch on preference programs and FTA’s is significant; Members of our firm also have helped recipient country’s strategize and negotiate trade programs with the U.S. Foley has also supported groups of companies and individual companies with market entry strategies based on the benefits offered under AGOA and CBI. Foley is in the process of representing the Government of Haiti on its FTA request and are working with companies on an AGOA 3 initiative.