South Korea and the United States have a rich history of diplomatic and economic relations. One such agreement that has significantly impacted the two nations is the South Korea and US Free Trade Agreement (KORUS FTA).
The agreement was signed on June 30, 2007, and came into effect on March 15, 2012. The KORUS FTA aimed to remove barriers to trade and promote economic cooperation between the two nations.
The agreement has had a significant impact on the economies of both countries. South Korea is the United States` sixth-largest trading partner and the second-largest in Asia. In 2019, exports from the United States to South Korea were valued at $60.4 billion, and imports were valued at $73.4 billion.
The KORUS FTA has been particularly beneficial to the US in the automobile and agricultural industries. US automakers have seen increased sales in South Korea since the agreement came into effect due to the elimination of tariffs. The agreement has also led to significant growth in US agricultural exports to South Korea. South Korea has become one of the top destinations for US beef, pork, and corn exports.
Similarly, South Korea has also benefited from the KORUS FTA. The agreement has provided South Korean businesses with access to the US market, which has led to increased global competitiveness. South Korean companies have also had the opportunity to diversify their products and services and establish partnerships with US companies.
The KORUS FTA has not been without controversy, however. Critics argue that the agreement has led to job losses in the US due to increased competition from South Korean imports. Additionally, South Korean labor laws have been criticized for their lack of protection for workers and have been a point of contention for some US labor organizations.
Despite these criticisms, the KORUS FTA has been an essential tool in strengthening the economic relationship between the US and South Korea. It has promoted increased trade and investment between the two nations, which has led to economic growth and job creation.
In conclusion, the South Korea and US Free Trade Agreement has been a significant milestone in the relationship between the two nations. The agreement has facilitated increased trade and investment, benefiting both economies and promoting economic cooperation.