Question

In 2007, the United States and South Korea signed the Korea-U.S. Free Trade Agreement (KORUS FTA). It was then revised in 2010, and again in 2018.
Given the information here, which of these would be MOST likely to have been accomplished by KORUS FTA?


A) the establishment of trade negotiations with North Korea


B) the complete elimination in trade quotas with Asian countries


C) an embargo against other countries trading with the U.S. or South Korea


D) a reduction in 95% of tariffs between South Korea and the United States

Answer 1

Answer:

D) a reduction in 95% of tariffs between South Korea and the United States

Explanation:

Although it was signed in 2007, it entered into force on March 15, 2012. Since 2016, 95% of all  industrial and consumer goods enter the territory of the two countries free of duty. The rest is expected to be eliminated in the next 10 years after that date.

U.S. goods and services trade with Korea totaled an estimated $165.4 billion in 2018.

Answer 2

Answer:

D) a reduction in 95% of tariffs between South Korea and the United States

Explanation:

Pay close attention to the name of the agreement, particularly the words “free trade.” Of the choices listed, a reduction in 95% of tariffs between South Korea and the United States is correct. The reduction of tariffs and other trade barrier would be the point of any agreement that has the words "free trade" as part of its name.