SEOUL (Dow Jones) — South Korea and the U.S. announced Tuesday that their free-trade agreement will take effect on March 15.
The decision follows continued negotiations with the U.S. over necessary preparations to be made, after the pact was approved by the U.S. Congress in October and by the South Korean parliament in November, the Ministry of Foreign Affairs and Trade said in a statement on its website.
The ministry said the government will take the necessary steps to “maximize benefits” that South Korean companies and the general public can have through the implementation of the pact.
U.S. Trade Representative Ron Kirk said the deal should support tens of thousands of U.S. and help achieve the administration’s goal of doubling exports by 2015.
“Entry into force of this agreement will open up Korea’s $1 trillion economy for America’s workers, businesses, farmers, and ranchers while also strengthening our economic partnership with a key Asia-Pacific ally,” said Kirk in a statement.
On Nov. 22, the South Korean parliament ratified the free-trade agreement in what was seen as the last major hurdle in a negotiation process that took more than five years.
Analysts forecast the pact will expand the $90 billion two-way trade relationship by 10{962fe9be9a8a5c386944bfa41f48d98b010325707b70b1fa6182bcabd27c5d7f} within five years. The deal eliminates most tariffs on goods between South Korea and the U.S.
They expect South Korea’s trade surplus with the U.S. to narrow, chiefly because South Korea is likely to sharply increase its imports of U.S. agricultural products.
Trade accounts for more than half of South Korea’s economic output and South Korean leaders have used the FTAs in part to force broader liberalization of the country’s economy, which has relied heavily on protectionist measures to fuel its rapid development of industries from the 1960s onward.
Source: Dow Jones
Posted by Haylie Shipp
