Free Trade Agreement between the Republic of Korea and the United States of America

The free trade agreement between the Republic of Korea and the United States of America, commonly called the KORUS FTA, was signed in 2007 and went into effect in 2012. This agreement aimed to eliminate tariffs and other trade barriers between the two countries and promote economic growth for both nations.

The KORUS FTA was the largest free trade agreement the United States had signed since the North American Free Trade Agreement (NAFTA) in 1994. The agreement lowered tariffs on a wide range of products, including agricultural goods, automobiles, and electronics. The agreement also included provisions to protect intellectual property rights, improve labor standards, and reduce non-tariff barriers.

The agreement had a significant impact on trade between the two countries. In 2019, the United States exported over $48 billion worth of goods to South Korea, making it the sixth-largest export market for American goods. South Korea is also a significant importer of American services, including education, healthcare, and tourism.

Overall, the KORUS FTA has been beneficial for both countries. South Korean companies have been able to compete more effectively in the American market, while American businesses have had increased access to the South Korean market. The agreement has also helped to strengthen the strategic alliance between the two countries and promote economic cooperation in the Asia-Pacific region.

The agreement has not been without its critics, however. Some American industries, such as the automobile and steel industries, have argued that the agreement has led to job losses and increased competition from South Korean companies. Others have criticized the agreement for not doing enough to address issues such as currency manipulation and non-tariff barriers to trade.

Despite these criticisms, the KORUS FTA remains an important agreement for both countries. It has helped to promote economic growth and strengthen the relationship between the United States and South Korea. As trade continues to evolve in the 21st century, the KORUS FTA provides a model for future free trade agreements between the United States and other allies around the world.