Free Trade Agreement Korea: What You Need to Know
The Free Trade Agreement between Korea and the United States, commonly known as KORUS, was signed in 2012. The agreement aimed to increase trade between the two countries by reducing tariffs on goods and services, promoting investment and protecting intellectual property rights. Here’s what you need to know about the free trade agreement Korea.
What is the free trade agreement Korea?
The free trade agreement between Korea and the US is a comprehensive deal that covers a wide range of areas such as agriculture, manufacturing, and services. The agreement eliminates tariffs on over 95% of industrial and consumer goods within five years of implementation, offering businesses and consumers increased access to each other’s markets.
What are the benefits of the free trade agreement Korea?
For US businesses, the free trade agreement with Korea offers new market opportunities and more favorable conditions for exports. The agreement reduces tariffs on a range of products, including automobiles, chemicals, and medical devices, making it easier for American companies to sell their goods and services to Korean consumers.
On the other hand, Korean businesses can benefit from the agreement by exporting more products to the US, which helps to stimulate job growth in Korea. The agreement also makes it easier for Korean businesses to invest in the US and vice versa, creating a more favorable environment for bilateral investment.
What are the criticisms of the free trade agreement Korea?
Critics of the free trade agreement Korea argue that the deal has cost American jobs and led to a widening trade deficit with Korea. According to the Economic Policy Institute, the US trade deficit with Korea has increased by 50% since the agreement was signed, resulting in the loss of over 100,000 jobs.
However, supporters of the agreement point out that it has helped to increase exports of US services to Korea, which has helped to narrow the overall trade deficit between the two countries.
In conclusion, the free trade agreement Korea remains a vital and complex trade deal that has both positive and negative effects on the economies of both countries. While it has its critics, the agreement has undoubtedly opened up new opportunities for businesses in both countries and helped to increase trade between them.