Friday, December 3, 2010

Hope In Turmoil??

Ever since those mysterious and unnecessary bombing attacks on South Korea I haven't been able to help myself to always keep an ear out to any updates on the possible outcome of this messy situation. The latest update which really caught my attention was on the talks of the latest agreement between the United Stated and South Korea which could ultimately help the American Economy. 
Recently the United States has reached a free trade agreement with South Korea which even though it hasn't been ratified by congress yet this agreement would ultimately strengthen the economic ties between Washington the capital of South Korea, Seoul. This agreement if ratified will in a period of 5 years eliminate about 95 percent of the tariffs on industrial and consumer goods with the South Korea. Most importantly it would eliminate all tariffs on the auto industry by lowering them over a period of 5 years until it was completely eliminated. Some of the Critics believe that eliminating these tariffs will only welcome the Korean auto industry into the U.S and allow them to compete in our market. But I tend to disagree with all the critics because even though this would potentially allow them easier access to our market, this is still a chance for the American market to grow in the expanding Asian market, and not to mention that these tax cuts goes both ways meaning American exports could increase by almost 10 billion dollars employing thousands in the process.
This to me seems like a brainless win-win situation, in which we scratch our allies back by giving them easier access to industrial and consumer goods to help deal with their unstable neighbors, while in the process they help us with our economy. This I believe is the right formula to a good alliance, and the results will only strengthen both economies.

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