On March 15, the Korea-U.S. Free Trade Agreement (KORUS FTA) celebrated its fifth anniversary. Over the past five years, the alliance between our two nations has grown stronger thanks to balanced, bilateral trade, and growing ties between our economies. The KORUS FTA has further opened the Korean market to U.S. goods and services by increasing protections on intellectual property, removing regulations and licensing requirements and reducing or eliminating most tariffs on U.S. products. When the FTA went into force, 80 percent of U.S. exports to Korea of consumer and industrial products became duty free immediately. Today, five years later, nearly 95 percent of bilateral trade in consumer and industrial products are duty free and most remaining tariffs will be eliminated by March 15, 2022.… Read More
On behalf of my organization, the Fairfax County Economic Development Authority, I recently signed a memorandum of understanding with the Wellness Information Technology Association based near Seoul to increase business opportunities between Korea and Fairfax County. There are a few really good reasons to do this.
First, there are a lot of similarities between the IT communities in Korea and Fairfax County, which is the business center of the Washington, D.C., area. Both have world-class companies in a wide range of IT sectors, and both areas have many companies that want to explore new market opportunities. For example, there are more than 50 companies from Korea already operating in Fairfax County.… Read More
The fifth year of implementation of the Korea-U.S. Free Trade Agreement (KORUS FTA) has continued to strengthen the relationship between Korea and the United States through forging deeper economic ties and increasing bilateral trade.
Trade Barriers Eliminated
This past year was an important year for the KORUS FTA. Duties on automobiles, semiconductor manufacturing devices, frozen pork, and lobster were eliminated in 2016. As a result of these tariff reductions, U.S. exports of automobiles increased 41.8 percent for the period of January-September 2016 over the same period in 2015. Additionally, U.S. exports of parts and automotive accessories to Korea also increased by 7 percent during the same time period.… Read More
According to the U.S. Department of Commerce International Trade Administration, more than 70 percent of the world’s purchasing power is located outside of the United States. Therefore, expanding into overseas markets may offer many new opportunities for American businesses. Small and medium-sized companies account for 98 percent of U.S. exporters. On average, businesses that export are more profitable, see faster growth and their employees earn more money than non-exporting companies. Free trade agreements, like the Korea-U.S. Free Trade Agreement (KORUS FTA) help make U.S. goods even more competitive overseas by allowing more exchange of goods and services at lower prices from decreased tariffs.… Read More
U.S. job creation has been strong since 2009, when U.S. unemployment topped 10 percent. Exports have played a major role in driving job creation and stimulating the U.S. economy. Free trade agreements like the Korea – U.S. Free Trade Agreement (KORUS FTA) foster a robust export market for U.S. goods and services across industries, and in turn create American jobs. Export of goods is responsible for 6.7 million jobs in the United States and trade with the United States’ free trade agreement partners creates a whopping 46 percent of those jobs. Thanks to the KORUS FTA, in 2015 Korea alone supported 358,000 American jobs through trade in goods and services.… Read More