On March 15, 2012, the United States and South Korea signed a new trade agreement, commonly known as KORUS. This agreement aimed to enhance trade and investment ties between the two nations, reduce trade barriers, and increase economic cooperation.
Under the KORUS agreement, over 95% of bilateral trade in consumer and industrial products will become duty-free within five years. This will immediately eliminate tariffs on a wide range of goods, including electronics, automobiles, and textiles. Additionally, the agreement will open up new opportunities for U.S. exporters in areas such as agriculture, services, and intellectual property.
One sector that will benefit significantly from this agreement is the automotive industry. South Korea is already a significant player in the automobile market, and the KORUS agreement will provide U.S. automakers with better market access, allowing them to compete more effectively with South Korean companies. The agreement will eliminate tariffs on U.S. cars immediately and phase out South Korean tariffs on U.S. cars over time.
Another sector that will benefit is agriculture. The agreement will provide new opportunities for U.S. producers of beef, poultry, and pork to sell their products in South Korea, which is already one of the largest markets for U.S. agricultural products in Asia. Tariffs on these products will be eliminated or reduced over time, making them more competitive in the South Korean market.
In addition to opening up new opportunities for U.S. businesses, the KORUS agreement will strengthen economic ties between the United States and South Korea. The two countries already have a strong economic partnership, with South Korea being the United States` sixth-largest trading partner and a major investor in the U.S. economy. The KORUS agreement will help deepen this partnership and promote greater economic cooperation between the two nations.
Overall, the new trade agreement with South Korea is a significant step forward in strengthening economic ties between the United States and South Korea. By reducing trade barriers and opening up new opportunities for U.S. businesses, the agreement will help promote economic growth and job creation in both countries.