CP 2

Group 4: Why United State currently does not have a commercial trade
agreement with Korea and many Latin American countries?

The U.S.-Korea Trade Agreement (KORUS Agreement) is an integral part of the Presidents
efforts to increase opportunities for U.S. businesses, farmers and workers through improved
access for their products and services in foreign markets. The KORUS Agreement supports the
Presidents National Export Initiative goal of doubling of U.S. exports in five years. It would also
promote the further integration of the U.S. and Korean economies and enhance the
competitiveness of U.S. businesses in the worlds 12th largest economy.
The U.S. International Trade Commission estimates that the reduction of Korean tariffs and
tariff-rate quotas on goods alone would add $10 billion to $12 billion to annual U.S. Gross
Domestic Product and up to $11 billion in annual merchandise exports to Korea. The
agreement will support tens of thousands of American jobs.
Under the KORUS Agreement, over 95 percent of bilateral trade in consumer and industrial
products would become duty free within five years of the date the agreement enters into force,
and most remaining tariffs would be eliminated within 10 years.
For agricultural products, the KORUS Agreement would immediately eliminate or phase out
tariffs and quotas on a broad range of products, with almost two-thirds (by value) of Koreas
agriculture imports from the United States becoming duty free upon entry into force.
The KORUS Agreement would also open Koreas $560 billion services market to highly
competitive American companies, supporting jobs for American workers in sectors ranging from
delivery and telecommunications services to education and health care services.
At this time, the KORUS Agreement is currently not in force. It will need to be cleared through
both countries legislatures prior to entering into force.