U.S.-South Korea Trade Agreement

The U.S. and South Korea agreed on December 3rd to revise its free-trade agreement and make change to certain provisions. According to the agreement, the U.S. will end its 2.5% tariff on automobiles in five years, while South Korea will immediately cut its 8% tariff on U.S. car imports to 4%, rather than eliminating it entirely.

“South Korean car sales to the U.S. will see limited impact from the revision,” South Korean Trade Minister Kim Jong Hoon said.

The U.S.-Korean accord, which involves the almost $68 billion in trade between the two countries, would be the U.S.’s largest trade agreement since the North American Free Trade Agreement in 1994.

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]businessdistrict.com