The United States of America and the Republic of Korea have a long-standing friendly relationship that dates back to the Korean War, where the US provided military assistance to South Korea. Their diplomatic ties have since strengthened, leading to the signing of a free trade agreement (FTA) in 2007.
The free trade agreement between the United States and South Korea, known as the KORUS FTA, is one of the most significant trade agreements for both countries. It was implemented in March 2012, and its primary aim was to remove barriers to trade, promote economic growth and improve relations between the two nations.
The KORUS FTA has brought about numerous benefits for both nations. For the US, it has opened up a vast market for American goods and services, creating new opportunities for businesses and workers. The agreement has also led to an increase in bilateral trade, with US exports to South Korea increasing by 21% since its implementation.
South Korea`s economy has also thrived under the FTA. The country has witnessed an increase in foreign investment and has become one of the top foreign direct investment destinations in the world. The agreement has also facilitated the growth of their automotive and electronics industries, which form a significant part of their economy.
Apart from the economic benefits, the FTA is instrumental in strengthening the political ties between the two nations. The agreement has created a platform for continued collaboration between the US and South Korea on security and defense matters. It has also fostered cultural exchanges and has increased people-to-people contacts.
However, the KORUS FTA has not been without criticisms. Some US lawmakers and interest groups have raised concerns about the agreement`s impact on American jobs and wages, specifically in the manufacturing sector. There have also been disagreements about South Korea`s adherence to the agreement`s provisions, particularly in the automotive industry.
The FTA`s future is also not guaranteed, with the Trump administration threatening to withdraw from the agreement in 2017. However, after negotiations, the US and South Korea reached an agreement to revise certain provisions, leading to the signing of the KORUS FTA amendments in September 2018.
In conclusion, the free trade agreement between the United States of America and the Republic of Korea has brought about significant economic and political benefits for both nations. It has helped to strengthen their bilateral relations and has facilitated trade between them. While the agreement has had its criticisms, the benefits it has brought about outweigh its shortcomings. The KORUS FTA serves as an excellent example of the positive impact of free trade agreements when implemented correctly.
