Smooth Sailing Ahead or Rocky Waters?: A Look at U.S.-Korea Relations in the 21st Century

By Michelle Kwon

Photo taken by The Brookings Institution

At a 2013 Georgetown University dean’s symposium, former Minister of Trade Bark Tae-ho highlighted South Korea’s three trade-related goals: revitalize trade and exports with the United States, increase the number of free trade agreements South Korea enters into, and secure continued market competitiveness via foreign investments. This three-pronged approach provides Korea the increasing momentum to secure its position as a leader within the Asia Pacific, and pursue a greater, more aggressive trade policy agenda in the 21^st century[1]; a successful conclusion and reception of the United States-Korea Free Trade Agreement (KORUS FTA) represents the first necessary step in helping Korea achieve its short-term and long-term goal. 

A Brief Overview of Korean Trade Prospectives for 2014

By Michelle Kwon 

President Obama attends TPP negotiations during the 2012 ASEAN Summit. (Image courtesy of Whitehouse.gov)

According to former Assistant United States Trade Representative for Congressional Affairs Luis Jimenez, the Korea-United States Free Trade Agreement (KORUS FTA) is the most sophisticated Free Trade Agreement signed by either country, not for its unprecedented expansion of market access for both countries, but for its significant advancement of bilateral cooperation in the professional service industries.  The most notable of the final text, which successfully came into force on March 15, 2012, delineates cross-border trade in services, specifically in regards to legal entities and telecommunication corporations.

Korea is now looking to sign a bilateral free trade agreement with China: South Korea’s single-largest trading partner. Trade with China (ex-Hong Kong) consists of 21.8% of Korea’s overall trade according to 2012 statistics.