CNN news 2011-10-17
CARL AZUZ, CNN ANCHOR: Fridays are awesome. So is today`s introduction from Lucas Ulloque, who works here at CNN. You`re going to hear more from Lucas in a bit.
First up, though, we`re headed to the White House.
The building is, of course, home to the U.S. president. This week it played host to South Korea`s president as well. Lee Myung-bak made a state visit to the U.S. this week. The South Korean leader was the honored guest at a state dinner at the White House on Thursday.
These state dinners are pretty rare. They`re designed to show the importance of a country`s relationship with the United States.
AZUZ (voice-over): That was the same message that President Obama made, calling President Lee a good friend and partner. Earlier in the day, the two presidents held meetings on some issues facing both of their countries, and they talked about their excitement for a new trade agreement between the U.S. and South Korea.
AZUZ: That agreement, one of three trade deals the U.S. Congress passed on Wednesday. The other two are with Colombia and Panama. The president and Republican leaders say these trade agreements will create thousands of jobs in the U.S. Some Democrats and workers` unions aren`t sure any new jobs are going to come out of this.
AZUZ (voice-over): Supporters also say the deals could increase American exports. When companies try to sell their products in a different country, they often have to pay a tariff. It`s an extra fee. For example, there`s an 8 percent tariff on American cars sold in South Korea. But under these new trade agreements, those fees would be phased out.
AZUZ: So in theory, this would make it easier to sell a U.S. car in South Korea. But as Paula Hancocks explains, for the auto industry, there could be some obstacles in making that theory a reality.
PAULA HANCOCKS, CNN REPORTER (voice-over): Chung Hansu (ph) bought his Chevrolet three years ago. Since then, he`s become a big fan of the U.S. car, even joining a local Chevrolet club.
HANCOCKS: The Korean market is an attractive one for the U.S., given the phenomenal explosion in car ownership here. Back in 1990, there were just over 3 million vehicles on the road. Twenty years later, there were almost 18 million. That`s an increase of more than 400 percent.
HANCOCKS (voice-over): Environmental concerns could make some U.S. models undesirable in an increasingly green Korea. As part of the FTA agreement, South Korea agreed to lower its strict emission and safety requirements in some cases. Car design is also a factor.
SUH JIN-KYO, KLEP EXPERT (Speaking foreign language).
HANCOCKS (voice-over): One FTA expert tells me, "When Korean buy cars, they look for style, design and convenience. Big, powerful cars, like in the U.S. are not seen as stylish here. So I don`t expect a surge in demand for U.S. cars.
Korean car and auto parts companies declined to talk about the FTA, saying the topic was too sensitive. But Korea`s trade investment promotion agency, KOTRA, says they will benefit.
KOTRA says GM has hinted they will increase imports of auto parts to $1 billion from the current $700 million. And Ford predicts imports rising by over 20 percent in the next 10 years.
Korean cars are expected to travel well. But for now experts assume U.S. car fans like Chung (ph) could remain in the minority in Korea -- Paula Hancocks, CNN, Seoul.