Lessons from the U.S.-Korea Free Trade Agreement

During my tenure as the chief U.S. negotiator for the U.S.-Korea Free Trade Agreement (KORUS), I discovered that strong partnerships persist despite disagreements. Trust, pragmatism, creativity, and shared goals enable partners to resolve conflicts effectively.

KORUS negotiations were challenging, with sensitive issues like agriculture, automobiles, and pharmaceuticals creating tension. One of the most contentious topics was U.S. access to Korea’s beef market. Although KORUS managed to reduce Korea’s significant beef tariffs, the debate over fully reopening Korea’s market remained contentious.

In 2003, a case of bovine spongiform encephalopathy, or mad cow disease, emerged in the U.S., leading Korea and other partners to halt U.S. beef imports. When Korea agreed to reopen its market in 2008, massive candlelight protests erupted in Seoul. Initially, it seemed the controversy would damage the bilateral economic relationship permanently, but it did not.

Through continued negotiations, additional safeguards were implemented, allowing the market to reopen. By 2021, Korea became the largest overseas market for American beef by value. A potential threat to the U.S.-Korea relationship turned into a mutual success.

This transformation occurred because neither side ignored valid concerns. They stayed engaged and addressed the issues, refusing to let this challenge define the whole relationship. This is a crucial lesson for both countries today as new trade measures strain their relationship.

Current global challenges, including active conflicts, trade weaponization, and technology competition, underscore the need for close U.S.-Korea collaboration. The beef controversy was not the last hurdle. In 2017, the U.S. sought changes to KORUS, amid political pressure. Despite tensions, amendments were negotiated, addressing automotive concerns. The updated agreement took effect in 2019.

KORUS committees and working groups continue to offer practical channels for resolving issues in agriculture, customs, technology, and more. These structures are vital for managing disputes. Korea plays a strategic role, hosting 28,500 U.S. troops and investing significantly in America’s industrial future.

Korean investments in the U.S. have grown, reaching over $90 billion by 2024. Korean companies are advancing U.S. industries, such as semiconductor manufacturing and green technology. Projects like Korea Zinc’s $6.6 billion minerals smelter in Tennessee and Hyundai Steel’s $5.8 billion low-carbon mill in Louisiana demonstrate impactful collaboration.

The future of U.S.-Korea relations is promising. The U.S. aims to revive critical industries central to economy and security, like shipbuilding. Korea, with its extensive industrial scale and skilled workforce, is a valuable partner. Enhanced cooperation in fields like semiconductors, energy, and pharmaceuticals offers opportunities for deeper ties.

Realizing this potential requires sustained support from both governments. The beef experience in Korea teaches us that even significant disputes, capable of sparking protests, need not derail bilateral relationships. The U.S. and Korea have resolved complex issues before and can continue to do so with engagement and creativity.

Both countries have emerged from past challenges stronger, positioned to address strategic issues on the horizon.

Wendy Cutler is Senior Vice President at the Asia Society Policy Institute and former chief U.S. negotiator for the U.S.–Korea Free Trade Agreement. The views expressed in this article are hers.