KORUS FTA Working Group

Part of the:

The KORUS FTA Working Group is a group of policy makers, private sector leaders and thought leaders from the U.S. and Korea who are working to advance dialogue on the KORUS FTA.

Trade is a key issue in U.S. policy toward Asia, affecting relationships on a fundamental level beyond just economics. This is especially true in the case of the U.S.-ROK alliance. The two countries signed an FTA in 2007. The agreement was ratified by the United States on October 12, 2011. The South Korean National Assembly passed the legislation ratifying the KORUS FTA on November 22, 2011 and President Lee signed the ratification bills on November 29. The goal of our working group is to foster discussion on the FTA and bridge differences where they occur.

NEWS FLASH

Critical Questions: The U.S.-ROK Free Trade Agreement
On October 12, the U.S. Congress approved free trade agreements with South Korea, Colombia, and Panama. The House passed the Korea trade deal (KORUS) in a 278 to 151 vote. In the Senate, KORUS passed with 83 in favor and only 15 opposed.

"Key Democratic Senators Support Obama's Administration's Decision to Move Forward on U.S.-Korea Trade"

US Senate Press Release

"Senate Foreign Relations Committee Chairman John Kerry (D-MA), East Asia and Pacific Affairs Subcommittee Chairman Jim Webb (D-VA), Joe Lieberman (ID-CT), Blanche Lincoln (D-AR), Mark Begich (D-AK), along with five Democratic senators, today endorsed the President’s call for a prompt resolution of outstanding issues to the U.S.-Korea Free Trade Agreement (KORUS FTA). In a letter to President Obama, the senators argue that it is in the economic and security interests of the United States to move forward on the KORUS FTA..." Read More

“U.S.- S. Korea Relationship Version 3.0”
OP-ED: William Cohen, The Korea Herald

“On the 60th anniversary of the Korean War’s outbreak, we reflect upon the estimated 2.5 million lives lost during the war and the strong military relationship we’ve built with South Korea since. During the subsequent Cold War, our Mutual Defense Treaty prevented further attacks from the North and formed the basis for one of our closest alliances in Asia. However, the failure of Seoul and Washington to ratify the 2007 U.S.-Korea Free Trade Agreement stands in the way of closer cooperation…” Read More

What is the KORUS Free Trade Agreement?

The United States-Korea Free Trade Agreement (KORUS FTA) was signed by both governments on June 30, 2007 but has yet to be ratified by either country. Concerns over beef and auto trade issues as well as the powerful union lobby in the U.S. have stalled the implementation process of the agreement.

If approved, the KORUS FTA would render 95% of U.S.-ROK bilateral trade in consumer and industrial products duty-free within three years. According to the U.S. International Trade Commission’s estimates, the KORUS FTA will raise U.S. GDP by as much as $11.9 billion and merchandise exports by as much as $10.9 billion.

The Office of the United States Trade Representative asserts that the KORUS FTA “would be the U.S.’s most commercially significant free trade agreement in more than 16 years…the KORUS FTA could be a model for trade agreements for the rest of the region, and underscore the U.S. commitment to, and engagement in, the Asia-Pacific region.”

South Korea currently has five free trade agreements in effect, including agreements with Chile, Singapore and, most recently, India. South Korea has also recently signed a free trade agreement with the EU and is discussing a number of possible FTAs including a bilateral agreement with Russia and a trilateral agreement with Japan and China.

For more information, visit the Office of the United States Trade Representative.