Anatomy of a Deal: The KORUS FTA
With negotiations running down to the wire, Korean and American negotiators announced that they reached a deal just before President George W. Bush’s trade promotion authority expired at 11:59 pm on April 1. Under the agreement, nearly 95 percent of consumer and industrial products will become duty-free within three years of the agreement’s coming into force. The agreement also works towards addressing politically sensitive concerns for the United States in the automotive and agricultural industries.
Early reports indicate that the overall deal is one which addresses many of the concerns of both parties and protects interests on both sides, but provides neither country with everything it was looking for. The two countries currently enjoy a trade relationship that topped $78 billion in 2006, and is expected to substantially increase under the FTA.
The following is a partial summary of reported results for some of the more politically sensitive issues for the United States and Korea from the FTA negotiations. For more detailed information, check out KEI’s website at www.keia.org as well as USTR’s website.