South Korea Trade Agreement with US: What You Need to Know
The South Korea-United States Free Trade Agreement (KORUS FTA) was established on March 15, 2012, and has greatly impacted the trade relationship between the two countries. This agreement was negotiated over a period of five years and is considered to be one of the most comprehensive trade agreements between the United States and any other country.
The main objective of this agreement was to lower barriers to trade between the two countries, promote economic growth, and create new job opportunities. Since its implementation, the KORUS FTA has resulted in the increase of exports of US goods and services to South Korea, with a total value of $24.6 billion in 2019.
Key Provisions of the KORUS FTA
One of the most significant provisions of the KORUS FTA is the reduction of tariffs on goods traded between the two countries. The agreement has removed tariffs on more than 95% of industrial and consumer goods within five years of its implementation. This means that US companies can now sell their products at competitive prices in the South Korean market, which was previously dominated by domestic producers.
Another key provision of the KORUS FTA is the protection of intellectual property rights. This provision has been put in place to ensure that US companies are protected from the unauthorized use of their patented technology, trademarks, and copyrights. This protection extends to various sectors, including pharmaceuticals, software, and entertainment.
The KORUS FTA has also opened up new opportunities for US businesses to invest in South Korea. The agreement has eliminated restrictions on foreign investment in certain sectors, such as finance, telecommunications, and retail. This has created new job opportunities in both countries and has led to higher economic growth.
Impact of the KORUS FTA on the US and South Korea
The KORUS FTA has had a significant impact on the US and South Korean economies. For the US, the agreement has created new opportunities for businesses to export their products and services to South Korea. This has led to an increase in the number of US jobs, as companies are able to expand their operations and hire new employees.
For South Korea, the agreement has provided access to new markets and has stimulated economic growth. The removal of tariffs has allowed for the import of cheaper goods and services, which has benefited consumers and increased competition in the market. This has also led to more investment opportunities, as foreign investors are now able to enter the Korean market with greater ease.
Conclusion
The South Korea-United States Free Trade Agreement (KORUS FTA) has had a positive impact on both countries, promoting economic growth and creating new job opportunities. The agreement has opened up new markets for businesses and has led to greater competition, benefitting both consumers and producers. With the KORUS FTA in place, the trade relationship between the US and South Korea is stronger than ever.