FTA Between Korea and U.S Research Paper Example | Topics and Well Written Essays - 1750 words

FTA Between Korea and U.S - Research Paper Example   The key proposal of this convention is to double America’s exports in five years under the president’s National Export Initiative. This initiative hopes to double these figures by lowering Korean prices and tariff-rate shares on merchandise only (USTR n.d.). According to the United States International Trade Commission, this decrease alone would contribute between $10 and $12 billion dollars yearly to the American GDP. At the same time, this reduction would contribute $11 billion yearly in goods exports to South Korea. KORUS estimates that more than 95% of the two-sided trade in consumer and manufacturing goods would turn into tariff-free business within half a decade since its approval (Manyin 1). In addition, the agreement would get rid of outstanding duties within a decade. KORUS further proposes the instant removal or phasing out of duties and shares on a wide variety of merchandise. This proposal means that nearly 66%, in terms of value, of South Korea’s farm imports from the United States would turn into tariff-free goods. Other industries that benefit from this drastic reduction in tariffs on American exports are manufacturing, automobile, financial products, and ecological initiatives (TRADE.gov n.d.). The agreement also proposes the opening of South Korea’s $560 billion services market to very competitive American firms. This proposition is geared towards offering employment opportunities for American employees in industries such as distribution, communications, education, and healthcare.