In his State of the Union address, President Bush asked Congress to ratify a free-trade agreement with South Korea.

Despite its reservations about free-trade agreements — both sides will pay a price in exchange for the benefits — Congress should say yes.

The agreement would give the U.S. a competitive edge against other countries in powerful Asian markets, and would foster closer ties with an important ally in a part of the world critical to our political and economic interests.

The deal would eliminate tariffs on 90 percent of product categories traded between the two countries, and would open up South Korea's markets in financial services, entertainment and legal services.

Especially affected would be agricultural exports — a potential boon for Hawai'i as we seek new markets to revitalize our agricultural industry.

The treaty is promising for Hawai'i for other reasons. In 2006, the largest foreign market for Hawai'i exports was Singapore, with exports valued at $232 million; South Korea ranked sixth, with $24 million, even though South Korea's economy is more than six times larger than Singapore's. In fact, it's the 11th largest in the world.

Most of the Hawai'i-based businesses exporting to South Korea in 2005 were small to medium enterprises that would benefit from reducing the red tape.

The agreement isn't perfect. Opponents in Congress say the deal won't help the U.S. auto sector. And South Korean farmers are protesting, fearful of American competition.

But South Korea's economic power is growing and cannot be ignored. The economic potential makes it imperative that the treaty be approved.