KOTRA "10 Years of Korea-US FTA, Trade Increased 1.7 Times... Expecting Active Exchanges in Supply Chain Building"

KOTRA Publishes Report on the 10th Anniversary Effects and Utilization Cases of the Korea-US FTA Implementation

[Asia Economy Reporter Park Sun-mi] On the 15th, marking the 10th anniversary of the Korea-US Free Trade Agreement (FTA) coming into effect, it was revealed that the total trade volume of goods between the two countries increased by approximately 67.8% over the past decade. This is evaluated as a mutually beneficial outcome confirming the expansion of trade, investment, and consumer choices between the two countries over the 10 years.

On the 14th, KOTRA announced through the report titled "The 10th Anniversary Effects and Utilization Cases of the Korea-US FTA" that the scale of South Korea's trade with the US has steadily increased since the FTA came into effect, and both countries have benefited from the Korea-US FTA.

Over the 10 years, the total trade volume of goods between the two countries increased by about 67.8%. Specifically, South Korea's exports to the US rose from $56.2 billion in 2011 to $95.9 billion in 2021, marking a 70.6% increase over the decade, showing a significant export expansion effect. Imports from the US also increased from $44.5 billion in 2011 to $73.2 billion in 2021, a 64.3% increase over 10 years.

The evaluation of the Korea-US FTA within the United States is also positive. US buyers and exporters reported actively utilizing the Korea-US FTA in the context of ▲tariff elimination strengthening the price competitiveness of Korean products ▲diversification of import sources following the US-China trade dispute ▲diversification of trade and consumption items after COVID-19.

The majority of US buyers and exporters stated that the tariff reduction effect of the Korea-US FTA positively influenced the expansion of trade with Korea. Additionally, following the imposition of high tariffs of up to 25% on Chinese products due to the US-China trade dispute, there were cases of increased imports of Korean products. COVID-19, which changed daily life, also impacted the utilization of the Korea-US FTA. At the early stage of the pandemic, when demand for personal hygiene products surged, the FTA’s tariff-free benefits positively affected trade.

Meanwhile, US buyers and exporters called for government-level support for active promotion of Korean products, certification, and proof of origin, and requested measures to address recent logistics disruptions and the still relatively high prices compared to Chinese products.

Kim Tae-ho, Head of KOTRA’s Economic and Trade Cooperation Division, said, “Over the 10 years of the Korea-US FTA, we have confirmed mutually beneficial outcomes with expanded trade, investment, and consumer choices between the two countries,” adding, “We expect exchanges between the two countries, including supply chain construction, to become more active and will actively support our companies.”

This content was produced with the assistance of AI translation services.