KORUS FTA

KORUS FTA
Name	KORUS FTA
Type	Free trade agreement
Signatories	United States, South Korea
Depositary	World Trade Organization

KORUS FTA, also known as the United States-South Korea Free Trade Agreement, is a trade agreement between the United States and South Korea. The agreement was signed on June 30, 2007, by George W. Bush, the President of the United States, and Roh Moo-hyun, the President of South Korea, with the aim of promoting trade and investment between the two countries, similar to the North American Free Trade Agreement and the United States-Australia Free Trade Agreement. The KORUS FTA is considered one of the most significant trade agreements in the history of United States trade agreements, along with the Trans-Pacific Partnership and the United States-Mexico-Canada Agreement. The agreement has been supported by various organizations, including the U.S. Chamber of Commerce and the National Association of Manufacturers.

Introduction

The KORUS FTA is a comprehensive trade agreement that aims to reduce trade barriers and promote economic cooperation between the United States and South Korea. The agreement covers a wide range of areas, including tariffs, non-tariff barriers, services trade, and intellectual property rights, similar to the World Trade Organization's General Agreement on Tariffs and Trade and the General Agreement on Trade in Services. The KORUS FTA has been seen as a key component of the United States's trade policy in the Asia-Pacific region, along with the Trans-Pacific Partnership and the United States-Japan Trade Agreement. The agreement has been supported by various United States politicians, including Barack Obama, Hillary Clinton, and John Kerry, as well as South Korean politicians, such as Lee Myung-bak and Park Geun-hye.

History

The KORUS FTA was first proposed in 2006 by George W. Bush and Roh Moo-hyun, with the aim of strengthening economic ties between the United States and South Korea. The agreement was negotiated over several years, with the United States Trade Representative and the Ministry of Trade, Industry and Energy (South Korea) playing key roles in the negotiations, similar to the United States-Canada Trade Agreement and the United States-European Union Trade Agreement. The agreement was signed on June 30, 2007, and was later ratified by the United States Congress and the National Assembly of South Korea in 2011, with the support of organizations such as the Business Roundtable and the National Foreign Trade Council. The KORUS FTA entered into force on March 15, 2012, and has been implemented in phases, with the aim of fully eliminating tariffs on most goods by 2022, similar to the European Union's Single Market.

Provisions

The KORUS FTA includes a wide range of provisions aimed at promoting trade and investment between the United States and South Korea. The agreement eliminates tariffs on most goods, including agricultural products, automobiles, and electronics, similar to the North American Free Trade Agreement and the United States-Australia Free Trade Agreement. The agreement also includes provisions on services trade, intellectual property rights, and investment protection, similar to the World Trade Organization's General Agreement on Trade in Services and the Agreement on Trade-Related Aspects of Intellectual Property Rights. The KORUS FTA also includes provisions on dispute settlement and regulatory cooperation, similar to the United States-Canada Trade Agreement and the United States-European Union Trade Agreement. The agreement has been supported by various organizations, including the U.S. Chamber of Commerce and the National Association of Manufacturers.

Economic Impact

The KORUS FTA has had a significant impact on the economies of the United States and South Korea. The agreement has led to an increase in trade between the two countries, with United States exports to South Korea increasing by over 20% since the agreement entered into force, similar to the North American Free Trade Agreement and the United States-Australia Free Trade Agreement. The agreement has also led to an increase in foreign direct investment between the two countries, with United States companies such as General Motors and Ford Motor Company investing in South Korea, and South Korean companies such as Hyundai Motor Company and Samsung Electronics investing in the United States. The KORUS FTA has also had a positive impact on the United States economy, with the agreement supporting over 200,000 United States jobs, according to the International Trade Commission and the United States Trade Representative.

Implementation and Amendments

The KORUS FTA has been implemented in phases, with the aim of fully eliminating tariffs on most goods by 2022, similar to the European Union's Single Market. The agreement has been amended several times since its entry into force, with the aim of addressing issues such as trade deficits and non-tariff barriers, similar to the United States-Canada Trade Agreement and the United States-European Union Trade Agreement. The KORUS FTA has also been subject to dispute settlement proceedings, with the United States and South Korea resolving several trade disputes through the agreement's dispute settlement mechanism, similar to the World Trade Organization's Dispute Settlement Body. The agreement has been supported by various organizations, including the Business Roundtable and the National Foreign Trade Council.

Criticisms and Controversies

The KORUS FTA has been subject to criticisms and controversies, particularly with regards to its impact on the United States economy and the South Korean economy. Some critics have argued that the agreement has led to a significant increase in the United States trade deficit with South Korea, similar to the North American Free Trade Agreement and the United States-Australia Free Trade Agreement. Others have argued that the agreement has had a negative impact on certain United States industries, such as the automobile industry and the steel industry, similar to the European Union's Single Market. The KORUS FTA has also been subject to criticisms from labor unions and environmental groups, who have argued that the agreement does not do enough to protect workers' rights and the environment, similar to the World Trade Organization's General Agreement on Trade in Services and the Agreement on Trade-Related Aspects of Intellectual Property Rights. Despite these criticisms, the KORUS FTA remains an important component of the United States's trade policy in the Asia-Pacific region, along with the Trans-Pacific Partnership and the United States-Japan Trade Agreement.

Category:Free trade agreements