The Economics of the Korea-U.S. Free Trade Agreement

11/6/2017 - Professor of Economics Kadee Russ, Professor of Economics Deborah Swenson, and undergraduate student Kelly Stangl at Econofact.

President Trump’s visit to South Korea this week occurs under a cloud of uncertainty over the future of our bilateral trading relationship. In an April interview with Reuters, the President said he was considering withdrawing from the Korea-U.S. Free Trade Agreement (KORUS), citing the U.S. trade deficit with South Korea. In the midst of an intensifying military threat from North Korea, President Trump again told reporters in September that he was considering withdrawing from this 5-year-old trade deal with the U.S.'s longtime ally on the Korean Peninsula. Key members of Congress, the business community, and the national security community have argued that strong ties with South Korea are not only good for the U.S. economy, but are also important for stability in the region. In early October, trade representatives from South Korea and the United States announced that they had agreed on a path to renegotiate aspects of the trade deal, though uncertainty remains regarding how this process will take shape.

Read the full story at Econofact.