How Did Free Trade Agreements Affect South Korea
South Korea is one of the fastest growing economies in the world. South Korea is currently ranked as having the 12th largest GDP [International Monetary Fund, 2013] and is one of the leading producers of technological hardware, such as displays and semi conductors. South Korea’s economy largely depends on International Trade, which includes both imports and exports. For a country who’s whole economy depends on international trade, it makes complete sense that the country would want to strengthen as many ties with other nations as possible. South Korea landed their very first Free Trade deal with Chile in 2003, known as the Korea-Chile FTA. Since then Korea managed to sign Free Trade Agreements with many other countries, such as the US, Singapore,
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When the Republic of Korea signed a Free Trade Deal with the United States of America in 2008 it was the perfect opportunity for Korea to break into the NAFTA market, through the US. Some of the most critical impacts this agreement had on the US, was the fact that South Korea’s export to the United States increased by 12% in the first year (worth $5.4 Billion). On the negative side, the Korean agricultural industry declined drastically, as it’s now cheaper to import certain products such at animal products (meat) from the US instead. This didn’t necessarily push the Korean meat industry out of the market, but instead it created incentives so they are more competitive, resulting in cheaper meat for the consumer in the end, whom ultimately supports the industries. The Korean Meat industry and rural development projects took a bit of a shake because of this, but the industry is still strong. Korea have however been criticised for its lack of transparency when it comes to trade agreement standards and lack of democracy in the negotiations process. Fortunately with the Korean-United States Free Trade Agreement, it’s now easier for Korean companies to privatise, which will lead to more stable economical measures and in return have less publicly owned
When the Republic of Korea signed a Free Trade Deal with the United States of America in 2008 it was the perfect opportunity for Korea to break into the NAFTA market, through the US. Some of the most critical impacts this agreement had on the US, was the fact that South Korea’s export to the United States increased by 12% in the first year (worth $5.4 Billion). On the negative side, the Korean agricultural industry declined drastically, as it’s now cheaper to import certain products such at animal products (meat) from the US instead. This didn’t necessarily push the Korean meat industry out of the market, but instead it created incentives so they are more competitive, resulting in cheaper meat for the consumer in the end, whom ultimately supports the industries. The Korean Meat industry and rural development projects took a bit of a shake because of this, but the industry is still strong. Korea have however been criticised for its lack of transparency when it comes to trade agreement standards and lack of democracy in the negotiations process. Fortunately with the Korean-United States Free Trade Agreement, it’s now easier for Korean companies to privatise, which will lead to more stable economical measures and in return have less publicly owned