Implications of the US -South Korea Free Trade Agreement on Agricultural Exports from the US

Srinivasa Konduru, Tae Hun Kim, Mechel Paggi

Abstract


The United States-S. Korea Free Trade Agreement (KORUS FTA) became effective in 2012 and is expected to create new opportunities and improve access for one another’s markets. It is expected to benefit the US agricultural sector particularly as S. Korea maintains high trade barriers for agricultural imports. This paper analyses the impact of KORUS FTA on the agricultural exports from the US with an example of table grapes. The results obtained by using the Import demand estimation method show that table grape exports will become more competitive in S. Korea due to the KORUS FTA. The paper also calculates preference indices for various agricultural imports from the US and rest of the world before and after the free trade agreement in S. Korean agricultural markets. This will help in understanding the implications of KORUS FTA not only on the US-S. Korean agricultural trade, but also between S. Korea and the rest of the world.


Keywords


Free trade agreement; KORUS; Market access.

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References


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DOI: http://dx.doi.org/10.18533/jefs.v2i02.61

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Copyright (c) 2014 Srinivasa Konduru, Tae Hun Kim, Mechel Paggi

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