Washington a winner in Korean trade deal

[Omaha Steve]

http://seattlepi.nwsource.com/business/332321_koreatrade20.html

When Chile and South Korea signed a free trade agreement four years ago, the management at Washington's oldest winery, Chateau Ste. Michelle, paid sharp attention -- acutely aware of how world economics touch Washington.

The Woodinville winery, 20 miles outside of Seattle, had to drop its prices to compete with Chilean wines and maintain its annual $1 million in South Korean sales.

So when a free trade agreement between the U.S. and South Korea became a possibility in the past year, the winery was eager to cite its case to lawmakers, said Alan Portney, vice president of international sales.


Oak barrels are moved in the cellar at Chateau Ste. Michelle winery in Woodinville, one of the Washington firms that expects more sales if Congress approves a trade agreement with South Korea.


"All these wineries are doing business in Korea right now," he said. "The northern Asia markets are a growing part of our business."

That free trade agreement, called KORUS, is now inching toward congressional approval, and economists say a clear winner would be Washington state, perfectly positioned to benefit from trade. The state's economy is playing a crucial role in a contentious debate over a deal that would knock down trade barriers such as tariffs between the U.S. and its seventh-largest trading partner.

Labor leaders from both countries oppose the way the deal was reached, but big labor's protests fell flat in June when the countries signed the agreement. Critics say that the deal would put thousands of South Korean farmers out of work, and that the environmental provisions are weak.

FULL story at link.