Us and South Korea Sign Free Trade Agreement

In: Business and Management

Submitted By gtxtreme360
Words 415
Pages 2
Roledany David
International Marketing
Case 3-2
US and South Korea Sign Free Trade Agreement

Many may ask why nations trade with each other. The answer to that question is that it provides those nations access to more goods and services at much lower prices. Whenever nations trade amongst one another, there are always winners and losers. The side who stands to win if congress ratifies the US-Korea free trade agreement would be Korea. The side that would stand to lose would be the United States.
In the United States the United Auto workers supported Korea trade deal. It was mostly due to the fact that they wanted to have the ability to export a large amount of vehicles and have many of the tariffs that were in there way removed. They see it as a landmark trade deal. Companies such as Ford were very disturbed by their limitations prior to the removal of the tariff. There are many reasons as to why the Global Automotive Industry was a lot of the time at the center of disagreements over trade relations. One of the reasons is that a reduction in South Korea’s tariffs would boost exports from the United States by 11 billion each year. Many US automakers stand to benefit from improved access to 48 million people. They show one of the largest interest because they have a large amount they could lose if things don’t go there way and a lot to gain if things go their way. They show the largest financial gain from a deal than many other American companies that have interest in trading with South Korea.
The deal with the United States and South Korea was not ratified for many reasons. South Korea feels like they would come at a loss over this deal. The Korea Rural Economic Institute predicts that U.S. agricultural exports to South Korea, currently $2.8 billion, could double after the FTA, causing the loss of up to 130,000 jobs. Several massive protests against the FTA…...

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