For many years, the United States’ market had been the forefront of trades in many regions worldwide. United States products are well circulated and Americans gain high revenue through their exports. Now, things are going on a downhill and America’s leadership on exports is jeopardized. 

Because of tough competitions especially from China, the Asian market is slowly moving away from American products. With America’s economic drop, this could make the problem even worse unless the United States would do something to revive their relationship with the Asian market. 

In economic surveys, out of the 34 Asian countries, the U.S. market share had decreased on 27 of these countries. Now that is indeed an alarming news. 

The new Economic giant, China, is gaining top speed in overtaking the U.S. with their exports. Deals had been made by China to be in partnership with the giant traders of Japan and South Korea. This in itself is a big chunk of the Asian market. 

Aside from China, The Europeans are also asserting efforts to form a free trade between Europe and Asia. In free trading, there will be no form of restrictions thus increasing the market for products and the prices also drop. 

Because of the condensed competition in capturing the Asian market, the U.S. is going farther and farther behind. Unless they break down the U.S. barriers, they will lose more of their market share and will hurt the United States’ economy even more. 

A free trade agreement between the U.S. and South Korea had already been signed but there are restrictions and the U.S. had not lifted these restrictions like on the U.S. autos. South Korea also has restrictions with the U.S. beef importations. 

This free trade agreement between South Korea and the United States should not fail as it could serve as the beginning of America’s future trend of FTA to the whole Asian region. 

In East Asia alone, they account 37% of total world GDP, 26% of global trade flows and makes accounts to 29% of the U.S. exports. Those are big numbers and the United States should take control of the situation before it gets too late for recovery. 

South Korea is willing to make free trade agreements among other regions such as the European Union, ASEAN (Association of Southeast Asian Nations), Canada, Mexico and India.  South Korea is also in negotiation for free trade agreement with China.

Nonetheless, the United States was successful in making free trade agreements with Singapore and Australia but aside from this breakthrough, no other breakthroughs have been made yet.

If there wouldn’t be an urgent ratification of the free trade agreement between South Korea and the U.S., the implementation of the European Union and South Korea’s Free Trade agreement will further decrease the chance of the United States to achieve a Free Trade agreement to South Korea and among other Asian regions.

Europeans are tough competitors of the U.S. in the auto sector and once the auto tariff had been reduced from 8% the European autos would gain a bigger market with the Koreans and will wound the US auto makers down to the core.

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