The US-Korea Free Trade Agreement affects the export of rubber shoes and other products

Although there is still a period of time before the "US-Korea Free Trade Agreement" (hereinafter referred to as the "US-Korea Agreement") comes into force on January 1, 2012, the discussion about the impact of the agreement will be in full swing. According to the relevant contents of the US-Korea agreement, the tariffs of most of the import and export commodities between the United States and South Korea will be reduced or withdrawn within five years, and other trade barriers will be cancelled accordingly.

Japan: The Japanese economic community expressed concern about the agreement. After the agreement came into effect, the competitiveness of Japan’s TVs and automobiles will be reduced, causing Japan’s exports to shrink further. If Japan does not promote trade liberalization, the strong Korean companies will further seize the United States as the world’s largest market, and the gap between Japanese and South Korean companies will become increasingly disparate.

According to calculations by the Japanese Ministry of Economy, Trade and Industry, due to the increase in the export of Korean products to the United States, by 2020, Japanese companies’ exports to the United States in the fields of automobiles, motors, electronics, and machinery will decrease by 1.5 trillion yen, and related domestic production values ​​will increase. Reduced 3.7 trillion yen.

Taiwan, China: The study report commissioned by the Ministry of Economic Affairs of Taiwan pointed out that the U.S.-South Korea Free Trade Agreement has the greatest impact on Taiwan’s export industry, mainly traditional industries, including textiles, clothing, bicycles, plastics, rubber shoes, etc., of which only 5 major categories are exported to the United States. With six categories of products, including textiles, garments and footwear, the amount of money lost to the United States will be reduced by approximately US$840 million, accounting for 6.1% of the total output value of Taiwan’s textile industry in 2006, and Taiwan will also reduce the number of employed people by more than 10,000.

Thailand: It is expected that the US-Korea free trade will not cause much impact on Thailand, but some industries in Thailand, such as the clothing and textiles sector, will be affected. Thai textile and apparel exporters need to be prepared to face more intense competition.