Question

: Some argue that regional or bilateral trade agreements are building blocks for global trade agreements. Others argue that such “Balkanization” of world trade represents stumbling blocks to international trade. Is KORUS a building block or a stumbling block, and why

Answer 1

KORUS is the bilateral trade agreement between US and Korea. There are several views about this agreement to be a building block or stumbling block.

But I believe that KORUS is a building block to international trade.

This bilateral trade agreement is building block because it removed tariff barriers, increased the job opportunities. One of the major evidence is that the overall trade between two countries has increased which has made Korea the sixth largest trading partner of USA. This is possible only when Korea is being benefitted from trade.

In case of the goods traded, US has increased is exports to around 80%. Investments from Korea to US has also increased owing to the bilateral agreement. Korea has also eliminated tariffs on majority of goods exported from USA .

In all korus is considered a building block but as we know that every coin has two sides , so this agreement would also have some negative effects.

(You can comment for doubts)