At this week’s G-20 summit, world leaders have gathered to discuss how to restore economic growth around the world. Among this group is South Korean President Lee Myung-bak, whose country will chair the G-20 in 2010. Throughout the global economic crisis President Lee has been strong and steadfast in urging major economies to remain committed to open markets and in cautioning against protectionism. He has followed word with deed. Korea’s economy, while hit hard early on during the financial crisis, has recovered relatively rapidly: Korea’s GDP grew 2.6 percent between April and June compared to the previous quarter, the highest of the OECD member countries. While huge domestic stimulus measures have contributed to the Korean economy’s rebound, the Korean government has moved forward aggressively to expand and broaden its global trading partnerships.

On more than one occasion, President Lee has said that an increase in trade would stimulate productivity and output. This applies not only to Korea but also to all countries seeking economic recovery, including the United States. In fact, an unprecedented opportunity for the United States and Korea to work together to create new economic growth and jobs in both countries is ready for action: the U.S.-Korea Free Trade Agreement. This trade agreement—the largest concluded by the United States since NAFTA—was signed by both governments over two years ago. However, narrow interests and political theater in both countries have held up legislative approval and implementation of the agreement. In the meanwhile, opportunities to boost the U.S. economy and create American jobs through billions of dollars in potential expanded trade with its seventh largest trading partner are being lost.

Last week the U.S. Chamber of Commerce released a new study quantifying the economic cost of failing to approve pending trade agreements, “Buy American” provisions in the stimulus bill, and other protectionist actions. “Half a million American jobs are at risk if the U.S. fails to move forward on trade,” said Tom Donohue, president and CEO of the U.S. Chamber of Commerce, during a speech at the Michigan Chamber of Commerce. As our economy begins to rebound, job growth remains stagnant. Tens of thousands of American jobs are already linked to trade and investment with Korea, and the FTA offers an opportunity to create more. It would remove tariff and non-tariff barriers with Korea, creating a higher demand for these American workers in all sectors of the U.S. economy. U.S. exporters expanding their sales to and business in Korea would need additional production workers, designers, and engineers among other professions in order to keep up with increased demand. And as economic indicators have shown in both difficult and prosperous times, exports lead to growth.

President Obama and Congress have taken many bold actions to stimulate U.S. economic recovery, but discussions on the critical role of trade—one of the largest generators of growth in the U.S. manufacturing, agriculture, and services sectors in recent years—have languished. Korea, on the other hand, has put trade front and center of its economic recovery and growth plan. It is doing this with full understanding that these agreements—which will open Korea’s relatively closed and protected market to increased imports—will entail difficult structural reforms and changes in key economic sectors. However, Korea’s leaders wisely see that open markets are the pathway towards future growth—and they are not sitting by idly waiting for the United States to take action. In July, the European Union and Korea finalized their own free trade agreement. If this agreement is approved and implemented before KORUS, U.S. companies risk being locked out of the Korean market, potentially losing significant market share in Korea as a result of trade diversion.

Beyond the economic arguments, implementation of the U.S.-Korea FTA could not be more appropriate during this critical time on the Korean Peninsula and in the Asia-Pacific region. North Korea has long sought to drive wedges between the United States and South Korea and to weaken their longstanding alliance. Meanwhile, China and other Asian countries are aggressively pursuing trade agreements that do not constitute real, comprehensive market opening—and potentially threaten to shut the United States out of the world’s most rapidly growing economic region. Ratification by Congress and Korea’s National Assembly of the FTA would not only reaffirm the already strong partnership between our two countries, but would send a powerful message across Asia that the United States and Korea are more committed than ever before to work together to promote regional prosperity and security. As the first U.S. trade agreement with a major Asian economy and close geostrategic ally, the impact of not approving the U.S.-Korea FTA in a timely manner sends an unwanted message, calling into question the United States’ commitment to its friends and allies, and to doing business in Asia.

Recent indicators reveal that the global economic downturn appears to be bottoming out. France and Germany have reported a slight quarterly GDP gain, the United States’ GDP decline has slowed, and China is expecting 8 percent growth by the end of this year. The worst appears to be over, and governments around the world must now determine how to replace large influxes of public spending with instruments for sustained economic growth and job creation. Trade and open markets can accomplish both of these goals, and Korea is leading the way forward on this. The Obama Administration and Congress should likewise demonstrate leadership—and building the foundation for new U.S. economic growth—by approving and implementing the U.S.-Korea FTA.