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The United States and South Korea signed a free trade agreement (FTA) on June 30, 2007. This agreement has been in effect since 2012 and has had a significant impact on trade between the two nations.

The US-South Korea FTA is one of the most comprehensive trade agreements that the US has signed in over a decade. It covers a wide range of sectors, including agriculture, manufacturing, and services. According to the Office of the United States Trade Representative (USTR), the FTA has helped to expand market access for US exporters and has increased US exports to South Korea by over 30%.

One of the primary reasons for the FTA was to address barriers to trade between the two nations. Prior to the agreement, South Korea had high tariffs on US exports, especially in key areas such as automobiles and agricultural products. The FTA has removed many of these barriers and has allowed US companies to better compete in the South Korean market.

The FTA has also had a positive impact on the US economy. According to a 2018 report from the USTR, the agreement has supported over 100,000 US jobs and has had a positive impact on economic growth. This report also states that the FTA has helped to level the playing field for US companies and has provided greater certainty for businesses looking to invest in South Korea.

However, some critics of the FTA argue that it has had a negative impact on certain US industries, such as manufacturing. They claim that the agreement has led to a surge in imports from South Korea, which has hurt American businesses. Additionally, there have been concerns about the enforcement of labor and environmental standards in South Korea.

Despite these concerns, the US-South Korea FTA remains a vital part of the trade relationship between the two nations. It has helped to expand market access for US companies and has provided greater certainty for businesses looking to invest in South Korea. As both nations continue to navigate the challenges of the global economy, the FTA will likely remain an important tool for promoting economic growth and trade between the US and South Korea.