The Korea-US Trade Agreement (KORUS) is a free trade agreement between the Republic of Korea (South Korea) and the United States of America. The agreement was signed on June 30, 2007, and entered into force on March 15, 2012, after being ratified by both countries’ governments. The purpose of the KORUS agreement is to ensure fair and open trade between the two countries, increase investment and employment opportunities, and level the playing field for businesses.
The KORUS agreement is a comprehensive trade agreement that covers a broad range of topics, including trade in goods and services, investment, intellectual property, labor, and environment. Under the agreement, both countries agreed to remove barriers to trade and investment, such as tariffs and non-tariff barriers, and to provide stronger protection for intellectual property rights.
One of the most notable provisions of the KORUS agreement is the agreement to eliminate tariffs on a wide range of goods. Over time, tariffs on more than 95% of consumer and industrial products traded between the two countries have been eliminated. This has resulted in increased trade volumes and a boost to the economies of both countries.
The KORUS agreement also provides for improved access for United States service providers to the Korean market. Under the agreement, South Korea has made commitments to open its market to US service providers in sectors such as telecommunications, financial services, and express delivery services. The agreement also includes provisions to protect US investments in South Korea and to provide for the resolution of investment disputes.
The KORUS agreement has been highly beneficial for both South Korea and the US. Since the agreement was implemented, bilateral trade between the two countries has grown significantly, and US companies have been able to expand their operations in South Korea. The agreement has also helped to create jobs in both countries, particularly in the manufacturing and service sectors.
In conclusion, the Korea-US Trade Agreement (KORUS) is a comprehensive free trade agreement that has benefited both countries. It has opened up markets, eliminated tariffs, and provided greater protection for intellectual property rights. As a result, bilateral trade between the two countries has increased significantly, and employment opportunities have been created. The KORUS agreement is an excellent example of how free trade agreements can benefit both parties and promote economic growth.
