Send a Tweet
Most Popular Choices
Share on Facebook 1 Share on Twitter 1 Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
OpEdNews Op Eds

Korea-US Free Trade Deal

By       Message Nattavud Pimpa       (Page 1 of 1 pages)     Permalink    (# of views)   4 comments

Related Topic(s): ; ; , Add Tags
Add to My Group(s)

View Ratings | Rate It

opednews.com

Author 48900
Become a Fan
  (2 fans)
- Advertisement -


T he world has been moving toward the "free' trade and political system. Since the North American Free Trade Agreement (NAFTA) took effect in 1994, the former American governments have been negotiating for a number of bilateral and multi-lateral agreements with various international governments. Currently, the Obama administration has successfully completed another important free-trade agreement with South Korea. This pact means potential business and political opportunities for both America and Korea. The major benefit of this agreement includes the promotion of free trade by eliminating tariffs on key export industries such as automobiles and hi-technology products.

Korea is a strategic location in North Asia, due to her rapid growth and political power in the region. Free trade with Korea may lead to potential strategic locations for key American companies and free flow of labor and capital between both countries. It is speculated that over 70,000 jobs will be created for American in automobile and electronic industries. Furthermore, export of American products to South Korea will rise to $10 billion.

- Advertisement -

What will be the key benefit for the American automobile industry? Apart from the obvious multiple industrial links in Asia, this free trade agreement may open the door to European Union. One factor pushing the South Korean-U.S. negotiations was the recent approval of a trade pact between South Korea and the European Union. This is the prospect that manufacturers in country such as Germany would soon see lower tariffs and other advantages over U.S. competitors.

For political reason, this free trade agreement becomes a landmark of victory for President Obama and his team since this free trade deal had been one of the major international trade issues raised by the former American government. International trade has been a subject of criticism and a crucial test of the White House's ability to find common ground with Republicans after the drubbing Democrats took in the mid-term elections. Thus, Obama realizes how significant this achievement is and will be for him and his leadership.

It, however, is still important for the Obama administration to consider key issues that require special attention from all business and political stakeholders. It includes issues such as safety regulations, environmental aspects of automobile industries, competition among American and Korean cars in the global market and unfair trade practices in industries other than automobile between both countries.

- Advertisement -

 

- Advertisement -

View Ratings | Rate It

opednews.com

Nattavud Pimpa is a senior lecturer in international management at Royal Melbourne Institute of Technology (RMIT University) in Australia. He is also on twitter.com/nattpimpa

Nattavud Pimpa Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Multinational Corporations, Corporate Social Responsibility and Poverty Eradication

Multinational Corporations and Social Media

International business and Beauty Pageants

An Alternative Profit: MNCs Role in Poverty Alleviation

An Alternative Profit: MNCs Role in Poverty Alleviation

Is it Class Warfare in Thailand?