FTA

HaeseonGwak., who is a chief of economic education institute, mentioned Korea’s economic dependency on trade is over 70%. It means Korea is related to many countries in the world. By globalizing, Korea needs FTA. FTA is abbreviation of Free Trade Agreement. It is a contract between two countries. It is a form of combined economics. After the WTO’s appearance, FTA is extending now. Now FTA is a big issue in Korea among people, especially to America. There is an argument between those who agree with FTA and those who do not. I think FTA is good for Korea. Also, Korea has to accept FTA with America. Because by tying close relations with America, Korea can get lots of advantages and Korea can not avoid this situation because of lacking resources, globalization and a tiny market in Korea.
Korea must have a good relationship with America because by being a friend with America, Korea can have good outputs from FTA. As Yonhapnews insists that by having FTA, it makes customs goes down. For example, in car business, by making FTA a custom tariff toward to America goes down, so Korean cars pay lower tax to America. In addition, a Korean Company or product can have opportunities to go abroad more easily. For example, if Korea and America have no relationship, even though a Korean company wants to establish it is not possible because there are many regulations to establish in America. However, after an FTA contract, a Korean Company can establish its oversea agency more easily. According to WonmokChoi, who is a professor in Korea, debated by competing with American goods and company, Korean companies and products can strengthen the competitiveness. Most Korean farmers think by contracting with America Korea imports American food which has good quality, taste and low price, so they are afraid of that consumers might buy American food. However, I think this is a good opportunity to compete and change for the better. Farmers can know their products’ weakness and problems.
There are other reasons why Korea should accept FTA. Every country has different kinds of and amount of natural resources. For instance, America has various vegetables and good quality of grain, and Korea has a skill to make a semiconductor. By contracting FTA, the two countries can exchange. Also, by globalizing, countries have to have relationships with each other. The world is like a big society and FTA is sort of a promise among countries. Countries never have a loss, so we need FTA. The most important reason is Korea has a small domestic market to struggle. Every day new companies and products produce, but Korea has limited land and market. There is no place can compete. Also, there is no more ability to grow. However, America has a large continent and various customers.
There is a proverb the frog in the well knows nothing of the great ocean. FTA is a great chance to go abroad and to know about the world. In addition, FTA brings good points to both two countries such as lower custom, many ways to go to the world and can exchange goods. Also, it always tries to find a middle spot which is good for both, so Korea need FTA for everyone. Everything has good and bad aspects. Of course, FTA has both sides, but Korea sees the good aspects and follows it.