U.S.-Korea Free Trade Agreement
The U.S.-Korea Free Trade Agreement (FTA) — also known as KORUS — went into effect on March 15, 2012. This deal between the United States and South Korea used as its template the North American Free Trade Agreement (NAFTA), so it’s no surprise that its outcomes have been similarly devastating.
Five years of data from the International Trade Commission on the Korea FTA reveal:
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Record-breaking U.S. trade deficits with Korea have become the new normal under the FTA – in 59 of the 60 months since the deal took effect, the U.S. goods trade deficit with Korea has exceeded the average monthly trade deficit in the five years before the deal.
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Since the FTA took effect, U.S. average monthly exports to Korea have fallen in 9 of the 15 U.S. sectors that export the most to Korea, relative to the year before the FTA.
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The auto sector was among the hardest hit: The U.S. trade deficit with Korea in motor vehicles grew 55.7 percent in the pact’s first five years. U.S. imports of motor vehicles from Korea have increased by 64.2 percent, or $6.4 billion by the fifth year of the Korea FTA.
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Exports of machinery and computer/electronic products, collectively comprising 27 percent of U.S. exports to Korea, have fallen 17.1 and 18.8 percent, respectively.
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U.S. exports to Korea of agricultural goods have fallen 5.4 percent in the first five years of the Korea FTA, despite almost two-thirds of U.S. agricultural exports by value obtaining immediate duty-free entry to Korea under the pact. U.S. agricultural imports from Korea, meanwhile, have grown 45.4 percent under the FTA. As a result, the U.S. agricultural trade balance with Korea has declined 8.1 percent, or $554 million, since the FTA’s implementation.
The Trump administration has begun talks to amend the Korea FTA, which President Trump called a job-killer on the campaign trail. But the wide gulf between candidate Trump’s fiery trade talk and his lack of deliverables as president to date calls into serious question the prospects for meaningful action on the Korea pact.
A coalition of civil society organizations from the United States and South Korea has called on both countries to oppose the Korea FTA’s corporate-centered terms, including investor-state dispute settlement that empowers multinational corporations to challenge our laws before panels of three private lawyers, intellectual property rules that drive up the cost of medicines and undermine human rights, rules that push a radical deregulation agenda, and more.
Featured Resources:
- Press Release: Today’s Five-Year Korea FTA Data Show March Imports From Korea Higher Than All But One Month Since Pact Started: What Is Trump’s Plan for Pact? (May 4, 2017)
- Letter: Korean and U.S. Groups Call for Repeal of the U.S.-Korea FTA (November 6, 2017)
- Find out more on the blog: Eyes on Trade
Reports and Memos | Press Room | Congress Speaks Out | Other Resources
Public Citizen Factsheets, Memos & Reports
- Don’t Believe the Hype: Agricultural Exports Lag under Trade Deals, Belying Empty Promises Recycled for the TPP (June 14, 2016)
- Data Fail: The Divergence between Rosy International Trade Commission Projections and U.S. Trade Agreements’ Actual Outcomes (May 12, 2016)
- Updated Factsheet:Job-Killing Trade Deficits Surge under FTAs: U.S. Trade Deficits Grow 418% with FTA Countries, but Decline 6% with Non-FTA Countries (March 9, 2016)
- Prosperity Undermined: The Status Quo Trade Model’s 21-Year Record of Massive U.S. Trade Deficits, Job Loss and Wage Suppression (August 20, 2015)
- Broken Promises: Outcomes of Korea, Colombia and Panama FTAs (July 7, 2015)
- Three Years of Korea FTA Show Failure of Obama’s ‘More Exports, More Jobs’ Trade Pact Promises, Further Imperiling Bid for Fast Track (May 8, 2015)
- Updated Chart: Table of Foreign Investor-State Cases and Claims under NAFTA and Other U.S. “Trade” Deals (April 30, 2015)
- Korea, Colombia and Panama FTAs: U.S. Exports to Korea Down, Imports from Colombia Up, Panama Tax Haven Policies Continue (January 6, 2015)
- USTR’s Omissions and Data Distortions Aimed at Hiding the Dismal Realities of the Korea Free Trade Agreement (December 20, 2014)
- Release of Two Years of Korea FTA Data Throws More Cold Water on Obama TPP and Fast Track Efforts After Asia Trip Fails to Change Dynamic (May 9, 2014)
- Korea FTA Outcomes on the Pact’s Second Anniversary: U.S. Exports to Korea Are Down, Imports from Korea Are Up, Auto and Meat Sectors Hit Particularly Hard (March 12, 2014)
- Korea FTA Financial Services and Investment Rules Do Not Safeguard Policy Space for Use of Capital Controls and Other Capital Management Mechanisms (February 24, 2012)
- Korea Trade Deal’s Negative Impact on U.S. Agriculture (May 12, 2011)
- April 2011 Executive Order on North Korea: Another Missed Opportunity to Address Conflict between Korea FTA and U.S. Sanctions Program (May 2, 2011)
- How the Korea FTA Could Provide New Revenue for the North Korean Dictatorship via Increased Access to the U.S. Market: Responding to Inaccuracies in Recent Commentary (March 31, 2011)
- Here’s an Impediment to Job Creation That Ways and Means Hearing Should Discuss: Korea Trade Deal Is Projected to Increase the Overall U.S. Trade Deficit (March 30, 2011)
- The Korea FTA is Lose-Lose for the U.S. and Korea: The Facts (March 29, 2011)
- Korea FTA Has No Provisions to Counter Currency Manipulation (March 28, 2011)
- Previewing Ways and Means Chair Camp’s Request for USITC Analysis of the December 2010 Korea FTA Supplemental Auto Deal (March 16, 2011)
- 12/3/2010 Supplemental Korea FTA Deal Did Not Fix Bush’s 2007 FTA Text (February 28, 2011)
- More on North Korea “Kaesong” Sweatshop Goods, New Cash for the Kim Dictatorship and Weakened U.S. National Sovereignty (February 25, 2011)
- Comments: Regarding U.S. International Trade Commission’s Forthcoming Study on Modifications to the Korea FTA Affecting Passenger Vehicles (February 14, 2011)
- The NAFTA Clone “Free Trade” Deal with Korea (January 30, 2014)
- Bush’s NAFTA-style trade deal would undermine Obama’s campaign trade reform commitments (November 11, 2011)
- Bush’s NAFTA-Style Korea FTA Would Undermine Obama’s Campaign Trade Reform Commitments (November 9, 2011)
- Talking Points on the Problematic Foreign Investor and Financial Deregulation Provisions of the Korea FTA (September 1, 2010)
- List of Korean firms operating in the United States that would be newly empowered to challenge US policies in foreign tribunals if the Korea FTA went into effect (July 1, 2010)
Public Citizen Press Releases & Statements
- Statement: On Announcement of Revisions to U.S.-Korea Free Trade Agreement (March 28, 2018)
- Trade Deficits Up in Trump’s 11 Months in Office; Rather Than Promised Speedy Reduction, 2017 Deficit Will Be Larger Than in 2016 (January 5, 2018)
- Press Memo: Asia Trip Spotlights Chasm Between Trump Campaign Rhetoric on Trade and Action, Raising Political Stakes for Meaningful Deliverables (PDF) (November 2, 2017)
- Press Release: Today’s Five-Year Korea FTA Data Show March Imports From Korea Higher Than All But One Month Since Pact Started: What Is Trump’s Plan for Pact? (PDF) (May 4, 2017)
- Press Release: On Unhappy Fifth Anniversary of U.S.-Korea Free Trade Agreement, Deficit With Korea Has Doubled as U.S. Exports Fell, Imports Soared. (March 14, 2017)
- Press Release: New ITC Report Finds Disturbing Trends in U.S. Economy After Implementation of Free Trade Agreements (June 30, 2016)
- Press Room: Read our past press releases and memos
- Eighth Anniversary of Signing of the U.S.-Korea FTA Shows Failure of Obama’s ‘More Exports, More Jobs’ Free Trade Promises, Further Endangering Push for the Trans-Pacific Partnership (June 30, 2015)
- Third Year of Korea FTA Data Released, Show Failure of Obama’s Last ‘More Exports, More Jobs’ Trade Pact Promises, Further Burdening Fast Track Prospects (May 5, 2015)
- Unhappy Third Birthday for Korea Free Trade Agreement Drags Down Obama Push for Fast Track Trade Authority (March 13, 2015)
- Press Call Monday at Noon: On Third Anniversary of Korea FTA, Worsening Trade Deficit Dogs Obama’s Quest for Fast Track (March 13, 2015)
- Corrected Trade Data Confirm Ballooning Trade Deficit Under Korea FTA and More Than Twice the Trade Deficit With NAFTA Partners (February 10, 2015)
- Statement of Lori Wallach: 2014 Trade Data Details Growing Trade Deficits under Korea FTA and NAFTA (February 5, 2015)
- Reporters Memo: Analysis of 2014 Annual Trade Data (February 4, 2015)
- On Second Anniversary of U.S.-Korea Free Trade Agreement, U.S. Exports Down 11 Percent, Imports from Korea Up and Deficit with Korea Balloons 47 Percent, Fueling Congressional Skepticism About Obama TPP Export Promises (March 12, 2014)
- Major Drop in U.S. Exports to Korea Since Obama’s Free Trade Pact, Zero Growth in U.S. Goods Exports Revealed in Today’s 2013 Year-End Trade Data Another Blow to Obama Push for Fast Track and TPP (February 6, 2014)
- Obama Plan to Double U.S. Exports by 2014 Floundering as He Heads to New Orleans Port to Sell His Trade Policy (November 7, 2013)
- As Korean President Arrives in Washington, First Year of Korea Free Trade Agreement Data Released; U.S. Exports Down, Trade Deficit with Korea Up, Contradicting Obama Promises of U.S. Export and Job Growth (May 7, 2013)
- On Anniversary of U.S.-Korea FTA Implementation, Though the FTA’s Outcomes Are Abysmal, Obama Pushes for Trans-Pacific and European Agreements Based on Same Model (March 14, 2013)
- USITC Trade Data Shows Obama Goal of Doubling Exports Is Even More Remote Relative to Census Bureau Data, Due in Part to Falling Exports under FTAs with Korea, Colombia and Panama (February 11, 2013)
- Tomorrow’s Census Bureau 2012 Trade Data Will Include Foreign-Made “Re-exports” but Even with Inflated Data, Obama Goal of Doubling Exports in Five Years Lags (February 7, 2013)
- Contrary to Obama’s Claim, the Three U.S. Free Trade Agreements Passed a Year Ago Today Have not Boosted U.S. Exports (October 12, 2012)
- Obama Ignores Korean Request for Changes to Trade Deal (March 14, 2012)
- Job-Killing Trade Deals Pass Congress Amidst Record Democratic Opposition (October 12, 2011)
- Obama Administration’s Dr. Jekyll Jobs and Mr. Hyde Trade Policy Schizophrenia (June 13, 2011)
- Reporters’ Memo: Survey of Studies on Potential U.S. Economic Effects of Korea Trade Deal Shows Rising Deficits and Job Losses, 2010 ‘Supplemental Deal’ Does Not Alter These Outcomes (January 6, 2011)
- Continuing Negotiations on Korea Trade Deal Are a Good Sign (November 11, 2010)
- Reporters’ Memo: Survey of Studies on Potential Economic Effects of the Korea FTA Show Rising Deficits and Job Losses (November 8, 2011)
- Reporters’ Memo: 2010 Election Focus on Trade and Job Offshoring Exposes Obama’s G-20 Political Peril: Pushing Bush’s Korea Trade Pact Endangers Obama’s Re-election (October 27, 2010)
Members of Congress & Civil Society Organizations Speak Out
- Letter: Korean and U.S. Groups Call for Repealing the U.S.-Korea Free Trade Agreement (November 6, 2017)
- List of Statements on the U.S.-Korea FTA From Members of Congress and Organizations
- Members of Congress to USTR: Stop Making False Claims on the Trade Deficit (March 19, 2015)
- Reps. Ryan, Kaptur To USTR: “Check Your Math On Trade Deficits” (March 19, 2015)
- DeLauro, Slaughter Statement On US-Korea Trade Deficit Numbers (March 6, 2015)
- Rep. Lipinski Opposes Giving Up Congressional Authority and Allowing President to “Fast-Track” International Trade Agreements (January 22, 2015)
- Rep. Ruben Gallego Leads Freshman Members in Calling for a Greater Role for Congress to Ensure a New American Trade Policy Creates Middle Class Jobs (January 21, 2015)
- Rep. Norcross Writes to Obama to Express Serious Reservations with Fast Track for the TPP (January 12, 2015)
- Korean Parliament Leaders of the Opposition Request Renegotiation of Korea Trade Deal (February 8, 2012)
- House Ways and Means Press Release: 141 Members Raise Concerns Over Agriculture Market Access in TPP. Letter here. (July 30, 2014)
- Chairwoman Debbie Stabenow’s Remarks at Senate Finance Subcommittee Hearing on Korea FTA (July 29, 2014)
- Sen. Sherrod Brown Press Statement: Following Hearing on Korea Free Trade Agreement, Sen. Brown Urges Administration to Address Non-tariff Barriers and Currency in TPP (July 30, 2014)
Other Resources
- See what jobs are at risk under the Korea trade deal
- Fact Sheets: Get all the facts on the job-killing deal with Korea.
- Articles: Read about the Korea deal in the news.
- Statements: Members of Congress & others speak out
- View our informative video on the Korea trade deal
- See Lori Wallach in the News and listen to her on the Radio