The Free Trade Agreement struck by the United States and South Korea will likely provide much cheaper food for Koreans while increasing the U.S. market abroad. The new deal includes significant drops in tarrifs on agricultural imports from the U.S., will provide farm commodities with increased ability to export to Korea.
Initially, President Obama did not agree to the proposal, asserting that it did not contain enough provisions to benefit the American economy. Several subsequent additions and improvements provided the agreement that President Obama later approved.
South Korea has the 15th largest economy in the world, and the U.S. exports almost $5 billion in agricultural products to South Korea annually. Restrictions on beef, pork, and rice are still in place, but this agreement is expected to increase exports of American goods by as much as $11 billion.
Posted: 12/8/10
