THE TIME IS RIPE FOR A KOREA-U.S.FREE TRADE AGREEMENT

Executive Summary

￭ For more than two decades, the idea of a Korea- U.S. free trade agreement (KUFTA) has been the subject of much discussion within the academic world and within industry on both sides of the Pacific Ocean.

￭ Korea’s FTA policy comes from the firm conviction that FTAs will not only liberalize trade in goods and services, but will also serve to upgrade its economic system. Such an upgrade involves enhancing transparency, increasing flexibility, and embracing global standards.

￭ The economic benefits of KUFTA, as have been extolled by economists at both the government level and within the private sector, are enormous. These include substantial increases in two-way trade and investment and in per capita GDP, etc. Furthermore, KUFTA could be an excellent vehicle to resolve bilateral trade issues, improving mutuallybeneficial business cooperation.

￭ With a regional integration effort in full swing, the economic landscape of the Asia Pacific region has significantly altered recently. Against this backdrop, the visualized KUFTA could provide the U.S. with added leverage for its advance into Asian markets.

￭ In addition to the economic benefits, by further strengthening Korea-U.S. ties, KUFTA would significantly enhance the bilateral security relationship. A stronger security relationship between the U.S. and Korea will bring greater stability to both the Korean Peninsula and the Asia Pacific region.