There Are Two Types Of Trade Agreements Between Countries:

1192 WordsApr 27, 20175 Pages
There are two types of trade agreements between countries: free trade and fair trade. Free trade is more commonly known because this is the type of trade agreements that have overpowered in the past few decades to create trade policies between countries. Free trade and fair trade share common ground; however, they are not the same. Have you heard of: “free trade is fair trade”? Well this is a false statement, mainly, because their means are different to get to the end, which is the common ground between them. Free Trade is referred as a general openness to exchange goods among countries with few to no barriers to trade. The main goal in a free trade agreement is to increase nations’ economic growth by lowering tariffs, quotas, labor and…show more content…
The United States-Korean Free Trade Agreement, also known as KORUS FTA, is a trade agreement as clearly stated between the United States and the Republic of Korea. It was signed on March 15, 2012. At the time, President Barack Obamas National Export initiative goal was to double the country’s exports in a five year period, and so he saw fit to support the KORUS Agreement in order to get to achieve his goal. Also, this agreement would promote further integration of both country’s economies and enhance the competitiveness of U.S. businesses in the world’s 12th largest economy. According to the U.S. International Trade Commission, they estimated that under this agreement the reduction of Korean tariffs and tariff rate quotas on goods alone would increase an estimate amount of $10 billion to $12 billion to annual U.S. Gross Domestic Product (GDP). In addition, it would also increase the annual merchandise exports to Korea to an estimated $11 billion. Most importantly, it would support tens of thousands of American jobs. When the agreement was enacted back in 2012, under KORUS, almost 80 percent of exports to Korea would become duty free, and within a five-year period it would reach nearly 95 percent. The remainder of the tariffs would be eliminated within 10 years under KORUS. Not only that, but Korea’s $560 billion services market would be open
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