One year ago today, Korea's free trade deal with the world's biggest economy the United
States went into effect after years of back and forth negotiations.
So what has Korea gained from the implementation of the trade pact and what's ahead for Korea
as we go into the act's second year?
Hwang Ji-hye has the details.
This manufacturing company exports its products to many countries, including the U.S..
Its CEO says the free trade deal with the U.S. has definitely produced new opportunities
for his company.
"More foreign buyers have shown interest in our company since the Korea-U.S. free trade
deal went into effect.
We expect a sales increase of around 100-thousand dollars this year."
The industries that have benefited the most from the bilateral trade deal of Korea and
the United States that went into effect last March are the auto parts, petroleum products
and machineries industries.
The auto parts industry saw exports to the U.S. rise over 25-percent since the trade
pact went into effect from the same period a year earlier.
Petroleum products exports have also risen more than 30 percent, while machineries exports
have gone up by almost 15 percent.
The rise of exports in certain industries, coupled with drop in imports of American products,
gave Korea a trade surplus of almost 15 billion dollars, an increase of 44 percent.
Experts say the bilateral trade pact with the U.S. served as a buffer against an overall
drop in overseas demand.
"Korea's trade volume amounted to over one-trillion dollars last year for the second straight
year due in part to the sharp rise in exports to the U.S., despite the global economic slump
prompted by major economies such as the countries in Europe, which are seeing slow growth."
The sentiment however, doesn't seem to be echoed by the average consumers in Korea as
tariff cuts in the trade pact didn't kick in right away on products that consumers normally
buy.
On average, it takes at least 10 years for tariffs to be lifted on products like pork,
cheese and beer.
"But consumers are able to enjoy a greater selection of fruit imports from the U.S..
In particular, imports of cherries and oranges jumped by over 30 percent last year after
the FTA went into effect."
As Korea enters the second year of the trade pact with the United States, the current ruling
Saenuri Party lawmaker Kim Jong-hoon, who was the chief negotiator for Korea in the
FTA talks with the United States, says Korean companies have to use the deal to their advantage.
He adds... that the government should spread information to Korean businesses, and especially
small-and medium-sized ones, on the country-of-origin labeling rules.
"I think we'll rather focus on small and medium sized businesses, because sometimes they feel
difficulties obtaining pertinent information.
And even, we have to look for ways to build up their capacity, to comply with the elements
of the agreement, particularly to match the requirements of rules of origin."
What all experts and officials from both governments agree on is that it's only been a year since
the free trade deal between Korea and the U.S. went into effect and that it is premature
to draw a definitive conclusion about the bilateral trade pact.
Hwang Ji-hye, Arirang News.