Free Trade Agreement between Korea and US: A Comprehensive Review
The Korea-United States Free Trade Agreement (KORUS FTA) is a bilateral trade agreement between the Republic of Korea (South Korea) and the United States that became effective in 2012. It is considered one of the most significant trade agreements signed by the United States in recent years, and it aimed to expand trade and investment between the two countries.
The KORUS FTA has been beneficial to both countries, as it has resulted in increased bilateral trade and investment. Prior to the agreement, the two countries had an annual trade volume of $68 billion. This increased to $102.3 billion in 2017, representing a 50% increase in just five years. The agreement has also helped create new job opportunities in both countries, particularly in sectors such as automobiles, agriculture, and technology.
The agreement covers a wide range of goods and services. It has eliminated tariffs on nearly 95% of industrial and consumer goods immediately, with the remaining tariffs phased out over time. The agreement also provides strong protection for intellectual property rights, opens up Korea`s services market to U.S. service providers, and ensures that Korean standards and regulatory processes are transparent, science-based, and non-discriminatory.
The KORUS FTA has been instrumental in increasing access to the Korean market for U.S. businesses. Prior to the agreement, many U.S. products were subject to high tariffs and non-tariff barriers, making it difficult for American businesses to compete in the Korean market. The agreement has provided U.S. businesses with greater access to the Korean market, making it easier for them to export their goods and services.
The agreement has also been beneficial for the Korean economy, as it has provided Korean businesses with greater access to the U.S. market. This has allowed Korean businesses to expand their operations and create new job opportunities in the United States. Additionally, the KORUS FTA has been supportive of Korea`s efforts to modernize its economy and promote innovation.
While the KORUS FTA has been beneficial for both countries, there have been some concerns raised about its impact on specific industries. For example, some U.S. automobile manufacturers have criticized the agreement, claiming that it has led to an influx of Korean cars into the U.S. market. However, overall, the agreement has been seen as a significant achievement in promoting greater trade and investment between the two countries.
In conclusion, the KORUS FTA has been a comprehensive trade agreement that has had significant benefits for both Korea and the United States. It has increased bilateral trade and investment, opened up new business opportunities, and supported efforts to modernize and innovate both economies. While there have been some concerns raised about specific industries, overall, the agreement has been a success and is a model for future bilateral trade agreements.
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