The Impact Of The U. S-Korea Trade Agreement

North Korea’s economy is very different then the United States’ economy. Even though one dollar in American money doesn’t seem much to us Americans, it is worth nine-hundred dollars in their currency. North Korea’s main sources of income are military products, machine building, electrical power, chemicals, mining, metallurgy, textiles, food processing and tourism. North Korea’s overall condition of the economy is not good.

In 2004 according to a report America’s imported as much as Japan, Germany, China and India combined.

These measures were introduced as there were extremely high taxes in South Korea, which widened disparity made many people suffer. South Korea’s economic success was a result of a competitive education system and a highly skilled and motivated workforce. In the 1970s and 1980s, South Korea became the leading producer of ships, one of the major ship building countries being Hyundai but this industry began to decline in the mid-1980s as a result of the oil glut and world-wide recession. However, South Korea is once again the world’s most dominant ship builder with a 50.6% share in the global shipping market as of 2008. Construction has also been an important in the South Korean export industry since 1960s and remains to be a critical source of foreign currency. By 1981, overseas projects, mostly in the Middle-East accounted for 60% of the work undertaken by South Korean construction companies. South Korea’s Samsung C&T Corporation also built many remarkable buildings such as the Petronas Towers and Burj Khalifa. During the 1960s, South Korea was extremely dependent on the U.S.A to supply its armed forced but after President Nixon’s policy of Vietnamization was removed in the 1970s, South Korea began to manufacture many of its own weapons. In 2010, South Korea’s defence exports were $1.5 billion. South Korea’s remarkable technological advancement and

* Products that are commonly imported in the United States are oil, cars, and clothes. These products are very important to humanity.

As well as the fact that their trade deficit is 4,899 USD millions, with a reasonable interest rate and inflation of 1.8% economically they are doing quite well when being compared to the U.S. As a matter of fact their inflation rate is not the same but with-in the same range for most years throughout the last 10 years. (Trading Economics, South Korean Balance of Trade, n.d) (Aneki.com, Ranking and Records, United States vs. Korea South) (Inflation.eu, Worldwide Inflation Data, Inflation South Korea 2012, n.d) (Global Rates Com, Fed Federal Funds Rate, American Central Bank’s Interest rate, n.d) (UN Data. A World of Information, Per Capita GDP at Current Prices USD, South Korea) (Index Mundi, Unemployment Rate South Korea, Historical Data Graphs per year) (U.S. Inflation Calculator, Current U.S. Inflation Rate 2003-2013,) (Inflation.eu, World Wide Inflation Data, Historical Inflation south Koreas – CPI Inflation)

The U.S main trade allies are Canada, Mexico, China, Japan, Germany, South Korea, and France combing for a total of 180 billion dollars earned. But not only do we earn money by exporting, we spend money importing the U.S spent 388 billion dollars on imported oil. “We aren't addicted to oil, but our cars are”.James Woolsey..On other products such as forest products, cars, food, and footwear we spend about 124 billion dollars from china which is the most from a country. In 2013, the total U.S. trade deficit was $476.692 billion. This is because the imports of $2.76 trillion exceed its exports of $2.28 trillion (Amadeo, Kimberly). This also shows the economy is strengthening, because of the deficit is lower than in 2012, when it was $537.6 billion. Another big cause to the trade deficit is consumer products. The largest products are drugs, consumer electronics, clothing, household goods, and furniture. Vehicle and mechanical products are another category where the U.S. ran a trade deficit in 2013. They imported $294 billion worth of cars, trucks and auto parts, while only exporting $146 billion, causing a huge deficit of $148 billion (Amadeo,

The impact of the Korean War on America’s economy took place between the years 1950 to 1953. World War II had cost the United States much, much more than the Korean War, however this war did not change the structure of growth and financing in America.

After the Japanese invasion, Korea had been swept into turmoil, which lead to the division of the country into two separate states. In the North the Democratic People's Republic of Korea, (D.P.R.K.) and in the South the Republic of Korea, (R.O.K.). The United States presence in South Korea would remain until an independent and unified Korean government was established successfully in the country. Following the impact of the Korean War, South Korea has undergone significant reform, which has aided in many changes in the cultural, economic, and political growth in the country.

This paper will examine the Australian beef market, and whether it is an attractive market for South Korea to import from. An analysis of the current Australian and South Korean beef industries; the conditions required to produce beef most efficiently, following the Heckscher-Ohlin Model; tariffs that are involved with these trades, and the impact of the Korea-Australia Free Trade Agreement; environmental implications to Australia; as well as the cultural environment and geographic factor, will be discussed to determine whether South Korea is an attractive market for Australian beef.

Since the end of World War II and Cold War, the whole face serious problem as economic crisis, devastation on human capital and public goods, and world trade system. To remove the trade barrier and strengthen economic cooperation cross the border, North American Free Trade Agreement (NAFTA) was established on 1 January, 1994 in order to remove all barriers to trade, promote fare competition in free trade area, and provide effective protection and enforcement of intellectual property right. Latter, WTO was established on 1 January 1995 that deals with the rule of trade between nations. South Korea is one of Asian Dragon that creates a lot of Free Trade Agreement with core economic countries. In February 2003, South Korea signed FTA with Chile

From 2013 the Australia is the Largest Export Market of Goods for United States. There were $26.0 billion exports to Australia from U.S in 2013 and actually 16.4%down from 2012 cost of ($5.1 billion), though it was 99% up from 2003. From the year of 2004 the U.S Exports was 87% higher to Australia (Pre-FTA).The Exports to Australia from U.S was accounted for 1.6% of the U.S exports in 2013 as whole of Exports.

This would lead to a drop in the wages of working Americans. One analyst thinks that as many as six out of every seven working Americans wage would decrease. (Pyke) Others believe that lowering the tariffs will lead to more American products being bought in countries that are part of the Trans-Pacific Partnership. For example, automotive parts that are manufactured in the United States have a twenty seven percent tariff in Vietnam and poultry from the United States has a forty percent tariff in Malaysia. This would even the market among countries that already trade copiously with each other (Sehgal). Some also predict that the Trans-Pacific Partnership would help promote that trade of knowledge-intensive services, which United States companies strive and excel (Autor). While the Trans-Pacific Partnership is projected to only help the United States a minuscule amount, with the most optimistic forecast seeing fourth tenth of a percent increase in the United States gross domestic product over the next decade (Pyke), this agreement could be vital for Japan. With Japan slipping into a recession the prime minister of Japan, Shinzo Abe, believes that the Trans-Pacific Partnership will help boost Japans economy by causing needed structural reforms (Donnan). Prime Minister Shinzo Abe has heralded the agreement as a central part of his Abenomics growth plan, and may even grow the gross domestic product of his country

     There are various trade agreements the United States have with many other countries and I will do a brief overview of a few of them. The most noticeable one is the North American Free Trade Agreement, which include the United States, Mexico, and Canada. This agreement was constructed and approved in January of 1992 and formed the largest free trade area. NAFTA eliminated and reduce tariffs and non-tariff barriers in addition to comprehensive provisions in the way trade was conducted between these countries.

“The deal, which was praised by both Democrats and Republicans, would allow the U.S. to keep its 2.5 percent tariff on South Korean cars for five years instead of lifting the tariff sooner, as the Koreans initially wanted. And each U.S. automaker could export 25,000 cars to the Asian country.”(Sean Lengell article)

South Korea expressed interest in joining in November 2010, and was officially invited to join the TPP negotiating rounds by the United States after the successful conclusion of its bilateral trade agreement with South Korea in late December. The country already has bilateral trade agreements with some TPP members, but areas such as vehicle manufacturing and agriculture would still need to be agreed, thus making any further multilateral