Economic Assessment of the KOREA–US FTA

Abstract

Discussions about the KORUS FTA began in the mid-1980s; however, due to the immaturity

of domestic motivation to push forward, full-scale talks didn't begin until 2004. The KORUS FTA, the negotiations for which began in June of 2006, with additional negotiations in 2007, was officially signed in late June of 2007. The KORUS FTA is expected to have a major impact on the Korean economy relative to the other FTAs that have already been established.

It is also expected to have a significant impact on trade by Korea and on FTA policies as a

whole.

Within the framework of the KORUS FTA, there are sensitive issues, but the general

consensus is that it is considerably in agreement with Koreas national interests through its coverage and its high level of market access. It is generally viewed that the agreement was improved in many aspects and that the risks of implementing the sensitive points were minimized by way of exceptions and added terms. However, based on differing perspectives on establishing an FTA with the US, some radical evaluations have begun to appear.

This paper aims to evaluate the KORUS FTA by analyzing the process involved, the main issues raised during the negotiations, and its economic impact. In the conclusion section, the author points out the need to strengthen the Korean trade policy system with the beef crisis as the stimulus for this, so as to foster the growth of communications between civic groups

and interested parties and to solidify the convergence of opinions. Also discussed is the need for the early ratification and execution of a reasonable agreement to realize the gains expected from the KORUS FTA.