For the first time in approximately 15 years, the United States government has concluded negotiations on one of the largest trade agreements since the North American Free Trade Agreement (NAFTA). The U.S.–Korean Trade Agreement (KORUS) will provide improved access to Korea's approximately 49 million consumers and $1 trillion economy.
In support of one of the most important priorities of the Obama Administration—economic recovery—the President announced last month that an agreement has been reached between the United States and Korean governments.
The trade agreement is expected to increase annual exports, as well as create new jobs for American workers, farmers and businesses over a period of five years. Additionally, the trade agreement will reduce tariffs on more than 95% of industrial and consumer goods, in addition to curtailing non-tariff barriers to trade, which currently exist for certain classes of merchandise.
Potential advantages of the trade agreement include:
Dramatically improves access to the Korean marketplace for our domestic automotive manufacturers,
Eliminates tariffs and non-tariff barriers to the exportation of domestic merchandise,
Includes provisions that would aid in the prevention of non-tariff barriers from arising in the future,
Provides duty-free access to the Korean marketplace for exports of aerospace, automotive, consumer goods, electrical and/or electronic goods, metals, scientific equipment, and shipping and transportation equipment,
Includes "state of the art" intellectual property right protections,
Provides greater access to the Korean marketplace for exports of agricultural products, which would include the elimination of tariffs and non-tariff barriers,
Requires the Korean government to maintain high standards for the protection of workers' rights, and
Requires the Korean government to refrain from weakening laws regarding the protection of workers' rights and to enforce labor laws so that there is an equal playing field for American competition.
There has been a great deal of emphasis on this particular trade agreement, especially since the U.S. at one time was Korea's number one trading partner. However, since 2003, the U.S. has fallen to Korea's fourth largest trading partner behind China, Japan and the European Union. With the implementation of this agreement, which is subject to congressional approval, many of the barriers to trade with Korea will be eliminated, which will help the U.S. regain a foothold in the Korean marketplace.
( linda )19 Dec,2011
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