U.S. agricultural exports to Korea declined by 5.4% in the first five years of Korea`s free trade agreement, while nearly two-thirds of U.S. agricultural exports arrive in value terms to Korea for an immediate entry to Korea under the pact. U.S. agricultural imports from Korea increased by 45.4% under the free trade agreement. As a result, the U.S. agricultural trade balance with Korea has fallen 8.1 percent, or $554 million, since the implementation of the free trade agreement. The U.S.-Korea Free Trade Agreement (KORUS) came into force on March 15, 2012. On the day of its implementation, nearly 80% of U.S.
exports of industrial goods to Korea were exempt from tariffs, including aerospace equipment, agricultural equipment, auto parts, construction products, chemicals, consumer products, electrical equipment, travel goods, paper products, scientific equipment and transportation and transportation equipment. Other benefits of the free trade agreement include strengthening the protection and enforcement of intellectual property rights in Korea and increasing access to the $580 billion market for highly competitive U.S. companies. The original KORUS was born out of bilateral consultations that began at the end of 2004, when the idea of a trade agreement between the two countries had already been launched in the 1980s. An agreement was reached in April 2007, which was revised next month to reflect the demands of Democrats in Congress and signed by the parties on June 30, 2007.3 The main features of the agreement were a deadline period for the removal of most tariffs on bilateral trade, with automotive and agriculture being the most remarkable areas of liberalization; Reducing the burden imposed by The various Korean tax and regulatory policies; The United States negotiated a comprehensive free trade agreement with South Korea. The U.S.-Korea Free Trade Agreement will eliminate tariffs and other barriers to trade in goods and services, stimulate economic growth and strengthen U.S.-Korea economic relations. Once implemented, nearly 95% of bilateral trade in consumer goods and industrial products will be exempt from tariffs within three years, including many major U.S. exports, such as machinery and industrial and entertainment electrical parts; spare parts; Power generation units The majority of chemical, medical and scientific equipment; motorcycles; and some wood products. Most of the remaining tariffs will be removed within 10 years. 9 Steve Holland, “Trump Hints on Withdrawal from U.S.-South Korea Free Trade Deal,” Reuters, September 2, 2017. At this time, North Korea announced a successful test of a nuclear weapon that could be loaded onto a long-range missile, which could have influenced the views of the United States and South Korea on trade issues.