Foreign trade relations between the Republic of Korea and the United States in the context of the development of integration processes

Abstract

The article examines the process of concluding, implementing and updating the Free Trade Agreement between the USA and South Korea, highlights the main problematic aspects of the functioning of the free trade area and the consequences for the bilateral trade of countries. The study found that South Korea benefited significantly from the negotiated liberal trade regime with the USA. The trade balance surplus of South Korea with the USA sharply increased - to a historic maximum of 25 billion dollars (in 2015), also South Korean exports of high-tech goods and high value-added goods increased significantly. For the USA, participation in the agreement led to an increase in the trade balance deficit and in the export of resources, agricultural goods and low value-added products. The observed consequences led to the use of a tough discriminatory policy by the USA, to the revision of the provisions of the Free trade agreement and to the military and political concessions from South Korea. As a result, the deficit of the US trade balance with South Korea decreased by 17.3% over the year, changes in the commodity structure of the countries' mutual trade are expected. The analysis proves the formation of a unified approach in US foreign trade policy towards partner countries within the framework of Free trade agreements, which lies in the mainstream of new protectionism and aimed at ensuring American geopolitical and economic interests.