The Korean pact will generate $11 billion in annual US exports and 70,000 jobs, boosting the US trade agenda in the economically vibrant Asia-Pacific region. This will elevate the US-South Korean alliance, traditionally defined by their common enmity of communist-governed North Korea. More than 28,000 US troops remain based in South Korea as a deterrent. Relations with South Korea have been far more straightforward. Obama and Lee have refused to offer fresh aid and incentives to North Korea without it taking concrete action to show it is sincere about eventually giving up its nuclear weapons. While Lee and Obama discussed next steps on North Korea during their meeting, the main theme of the visit remained trade. After hosting Lee at a White House state dinner Thursday night, Obama traveled with the South Korean leader to a General Motors plant in Detroit, the heart of the US auto industry. Negotiators reached a compromise late last year, and Lee’s visit spurred Democrats and Republicans to set aside their differences and approve free trade agreements with South Korea, Panama and Colombia. The Korean pact, which still requires approval from South Korea’s legislature, is America’s biggest free trade agreement since the 1994 NAFTA pact with Canada and Mexico. South Korea is the world’s 12th largest economy. US-South Korea trade amounted to $90.2 billion last year.
While this is a great economic deal it is very telling of the strength of US-South Korean alliance. Free trade is great but it brings about more inequalities in a society. I would like to see who this deal affects in the future. Free trade is not sustainable and is only good until resources run dry. South Korea wants to become a global player and what better way than to partner with the world’s largest economy.
1 comment:
Its amazing to think how interconnected our world is. With all of the trade that happens on a daily basis you wouldn't think that it would impact other countries in the way that it does.
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