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

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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.

About the authors

Inna V. Andronova

Peoples’ Friendship University of Russia (RUDN University)

Author for correspondence.
Email: aiv1207@mail.ru

Doctor of Economics, Professor, Head of the International Economic Relations Department

6 Miklukho-Maklaya St, Moscow, 117198, Russian Federation

Natalia V. Dyuzheva

Peoples’ Friendship University of Russia (RUDN University)

Email: dioujeva@yandex.ru

Ph.D in Economics, Associate Professor of the International Economic Relations Department

6 Miklukho-Maklaya St, Moscow, 117198, Russian Federation

Kirill A. Andronov

Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs of Russia (MGIMO University)

Email: dabr1e67@gmail.com

student of the Faculty of International Relations

76 Vernadskogo Ave, Moscow, 119454, Russian Federation

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Copyright (c) 2020 Andronova I.V., Dyuzheva N.V., Andronov K.A.

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