Interesting update on how the US free trade agreement with Korea has affected US car exports to the Asian trading partner – but we can’t say we’re surprised.
According to government data cited by Public Citizen’s Eyes on Trade blog, “under the FTA, US goods exports to Korea have declined by 9 percent (a decrease of more than $2.5 billion) in comparison to 2011 levels for the same months.”
Compared with the pre-FTA levels of 2011, US car exports are down 1 percent, but the killer is the other side of the coin: “imports of cars and auto parts from Korea have soared 17 percent ($1.8 billion) resulting in a 19 percent increase in the US automotive trade deficit with Korea.”
Well, as long as automotive demand in the US domestic market and other key global areas (ahem, China) keeps up, this shouldn’t be too much of an issue. But this proves the free trade facade with Korea is nothing more than politically motivated.
Automotive Sector Metals Index – Weekly Trends:
The biggest mover on MetalMiner’s weekly Automotive MMI® was the copper cash price, which saw a 2.6 percent increase on the LME to $8,148 per metric ton. This comes on the heels of a 1.9 percent decline the week prior.
The 3-month price of copper rose 2.6 percent on the LME to $8,115 per metric ton after falling 1.8 percent during the previous week.
The price of Chinese lead rose 0.3 percent after falling 0.3 percent during the previous week. Prices for Korean 5052 coil premium over 1050 sheet remained constant.
The price of US HDG fell 1.5 percent after rising 0.1 percent the week before.
US palladium bar saw its price rise 0.4 percent over the past week. US platinum bar remained unchanged for the week.
The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends. For more information on the Automotive MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.