The United States and South Korea signed the U.S.-Korea Free Trade Agreement (KORUS) in 2007, which came into effect in 2012. The agreement was aimed at increasing trade relations between the two countries by reducing tariffs and other trade barriers to increase exports and stimulate economic growth.
The KORUS agreement is one of the most important free trade agreements (FTAs) that the United States has ever negotiated. With the agreement, the United States and South Korea eliminated tariffs on over 95% of goods and services traded between the two countries. The agreement also covers intellectual property rights, investment, labor, and environmental standards.
The KORUS agreement has been beneficial for both countries. It has led to increased trade and investment between the two countries and has created new market opportunities for businesses. Since the implementation of the agreement, U.S. exports to South Korea have increased by more than 12%, and U.S. businesses have gained access to new markets. Meanwhile, South Korea has also benefited from the agreement, as it has been able to expand its access to U.S. markets and increase its exports to the United States.
However, the KORUS agreement has also faced criticism. Some have argued that it has led to job losses in the United States, especially in the auto industry. Others criticize the agreement for not addressing issues such as currency manipulation and labor standards adequately.
Despite the criticism, the KORUS agreement remains an essential part of U.S.-South Korea relations. The two countries continue to work together to ensure that the KORUS agreement is effectively implemented, and that the benefits of the agreement are shared equally between the two countries.
Overall, the U.S.-Korea Free Trade Agreement has been a significant success story. It has helped to strengthen economic ties between the two countries, and it has provided new opportunities for businesses to grow and prosper. The agreement remains a cornerstone of U.S.-South Korea relations, and it is likely to remain so in the years ahead.