After three years of negotiation, South Korea and European Union (EU) officially signed the Free Trade Agreement (FTA). I can’t explain how glad I am. Despite all the political issues and problems, I’m really proud of my country. As far as I know, South Korea is one of the first countries in East Asia that signed the FTA with EU. South Korea will have greater access to EU markets compared to competing countries.
Globally, and especially in South Korea, unemployment crisis is insane. The good news is that through the FTA with EU, 253,000 work places will be created. In other words, 253,000 people will get a job. Moreover, the gross domestic product is forecasted to increase by 5.6% in the long term.
The economics benefit that comes from the FTA is enormous. Abolition of tariffs will allow imported goods to have a competitive price resulting as invigoration of markets. Invigoration of markets will lead to consumption of consumers. This will vitalize the economy. Thus, through FTA between South Korea and EU, a positive circular flow of economy will be created.
I really do hope that South Korea will leap into the ranks of the developed nations in the near future.
Honestly, do you know what I’m really glad about?
Abolition of tariffs on German cars = Hyundai at huge risk.