The South Korea-US Free Trade Agreement: What You Need to Know

The South Korea-US Free Trade Agreement (KORUS FTA) is a pact signed between the two nations in 2007 that aimed to eliminate tariffs, improve investment relations, and lower trade barriers between the United States and South Korea. The pact, which took effect in 2012, had a tremendous impact on both countries` economies, promoting trade and creating jobs.

The KORUS FTA was the US`s first free trade agreement with a major Asian economy, and it came at a time when South Korea was rapidly developing. The agreement aimed to create new opportunities for both countries` businesses and level the playing field for workers and consumers.

The KORUS FTA eliminated tariffs on 95% of consumer and industrial products within five years, improving market access for US products to South Korea`s 51 million consumers. It also opened up South Korea`s $1 trillion services market to US companies, improving US companies` ability to sell services abroad. Additionally, the agreement provided new provisions for intellectual property protection and labor and environmental provisions to ensure that trade was fair and sustainable.

Since the agreement`s implementation, both countries have seen significant benefits. For instance, US exports of agricultural products to South Korea have increased by almost 50%, and South Korea`s small and medium-sized businesses have gained greater access to the US market. The KORUS FTA has also created jobs in both countries, with over 400,000 jobs in the US directly related to exports to South Korea.

However, the KORUS FTA has also faced some criticism. Some opponents argue that the agreement has led to job losses in certain sectors, such as the US auto industry, as South Korean cars have become more competitive in the US market. Additionally, some critics argue that the agreement has not done enough to address South Korea`s non-tariff barriers in certain sectors, such as agriculture.

Despite these criticisms, the KORUS FTA remains a critical agreement for both countries. The pact has created new opportunities for businesses and consumers on both sides and has significantly boosted trade and investment between the United States and South Korea.

In conclusion, the South Korea-US Free Trade Agreement is an essential agreement that has significantly impacted both nations` economies. The agreement has led to increased trade, job creation, and new opportunities for businesses and consumers in both countries. While the agreement has faced some criticism, its overall benefits have been significant, and it remains a vital part of the US`s trade and investment relations with Asia.