{ "id": "R41660", "type": "CRS Report", "typeId": "REPORTS", "number": "R41660", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 396016, "date": "2012-01-04", "retrieved": "2016-04-07T00:22:32.176813", "title": "U.S.-South Korea Free Trade Agreement and Potential Employment Effects: Analysis of Studies", "summary": "The Obama Administration finalized negotiations with South Korea in early December 2010 on a bilateral free trade agreement. Congress passed the implementing legislation for the U.S.-South Korea free trade agreement on October 21, 2011 (P.L. 112-42). Congress not only plays a direct role in approving legislation that implements the provisions of free trade agreements, but also authorizes and appropriates funding for programs that are meant to provide special assistance to firms and workers that are dislocated as a result of lower barriers to trade. Since the agreement with South Korea covers a wide range of trade and investment issues, it could have substantial economic implications for both the United States and South Korea. South Korea is the seventh-largest trading partner of the United States, and the United States is South Korea\u2019s third-largest trading partner.\nSimilar to other trade agreements, the U.S.-South Korea Free Trade Agreement (KORUS FTA) attracted both supporters and detractors, primarily over the impact the agreement could have on employment in the economy. Supporters argued that the agreement could create as many as 280,000 jobs in the economy. Others, however, argued that the agreement could lead to an overall loss of up to 159,000 jobs in various sectors of the economy. Still others contended that the United States could stand to lose exports, employment, and extended economic opportunities if it failed to sign a trade agreement, while the European Union and other nations were lining up to finalize similar agreements with South Korea. \nEstimating the economic impact of trade agreements, however, is a daunting task, due to a lack of data and important theoretical and practical matters associated with generating results from economic models. In addition, such estimates provide an incomplete accounting of the total economic effects of trade agreements. This report assesses the results of a number of models used to generate estimates of the effect of the KORUS FTA on employment. These studies were chosen specifically because they estimate (or can be used to estimate) data on employment effects of the trade agreement. All economic models incorporate various assumptions that are necessary in order for the model to generate results. Invariably, these approaches determine, to some extent, the results that are generated and, therefore, limit their representation of the real world economy. Currently, the various models produce widely disparate estimates of the number of jobs affected by the trade agreement, reflecting the various assumptions that are used in the models and differences in the approaches.\nFrom the perspective of a large open economy such as the U.S. economy, international trade is not a major determinate of total employment in the economy, real wages in the economy, or the overall level of production. This is especially true for bilateral trade agreements with individual countries where the impact on the economy as a whole is expected to be small. Nevertheless, some sectors of the economy are likely to be affected more than others. Congress has demonstrated an ongoing interest in assessing the economic impact of trade agreements and, at times, has provided assistance to those workers and firms that are disproportionately affected.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41660", "sha1": "6524afe612fce4edaac1db6997c38f38b2a1b7b4", "filename": "files/20120104_R41660_6524afe612fce4edaac1db6997c38f38b2a1b7b4.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41660", "sha1": "980a9f1d2cbda5f5066d5957852f6a2e05773584", "filename": "files/20120104_R41660_980a9f1d2cbda5f5066d5957852f6a2e05773584.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc40122/", "id": "R41660_2011April11", "date": "2011-04-11", "retrieved": "2011-08-27T10:13:38", "title": "Proposed U.S.-South Korea Free Trade Agreement and Potential Employment Effects: Analysis of Studies", "summary": "This report discusses the free trade agreement between United States and South Korea, and the potential economic implications for both the United States and South Korea. This report assesses the results of a number of models that are being used to generate estimates of the effect of the KORUS FTA on employment. These studies were chosen specifically because they estimate (or can be used to estimate) data on employment effects of the trade agreement.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20110411_R41660_240183b995c5761bf5f272df68a626c5221bfe00.pdf" }, { "format": "HTML", "filename": "files/20110411_R41660_240183b995c5761bf5f272df68a626c5221bfe00.html" } ], "topics": [ { "source": "LIV", "id": "Free trade", "name": "Free trade" }, { "source": "LIV", "id": "Trade", "name": "Trade" }, { "source": "LIV", "id": "Foreign policy", "name": "Foreign policy" }, { "source": "LIV", "id": "Foreign relations - South Korea- U.S.", "name": "Foreign relations - South Korea- U.S." }, { "source": "LIV", "id": "Foreign relations - U.S - South Korea", "name": "Foreign relations - U.S - South Korea" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc103137/", "id": "R41660_2011Feb28", "date": "2011-02-28", "retrieved": "2012-09-19T20:16:14", "title": "Proposed U.S.-South Korea Free Trade Agreement and Potential Employment Effects: Analysis of Studies", "summary": "This report discusses the free trade agreement between United States and South Korea, and the potential economic implications for both nations.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20110228_R41660_fe6ee67046ab7fa81a3e9f49b78060b98409037e.pdf" }, { "format": "HTML", "filename": "files/20110228_R41660_fe6ee67046ab7fa81a3e9f49b78060b98409037e.html" } ], "topics": [ { "source": "LIV", "id": "Free trade", "name": "Free trade" }, { "source": "LIV", "id": "Trade", "name": "Trade" }, { "source": "LIV", "id": "Foreign policy", "name": "Foreign policy" }, { "source": "LIV", "id": "Foreign relations -- South Korea -- U.S.", "name": "Foreign relations -- South Korea -- U.S." }, { "source": "LIV", "id": "Foreign relations -- U.S. -- South Korea", "name": "Foreign relations -- U.S. -- South Korea" } ] } ], "topics": [ "Economic Policy", "Foreign Affairs", "Health Policy" ] }