After 10 months of tortuous negotiations, U.S. and South Korea signed free trade agreement (FTA) in the evening of June 30th in which two countries commit to eliminate 95% tariffs on and lift trade barriers for industrial goods and services.

Moreover, South Korea agreed to eliminate tariff on about two third of American agricultural products when FTA comes into effort. As prediction of specialists, this agreement will add US$ 17-44 billion to two nations' commerce (now is US$ 78 billion). This agreement will come into effort only when it is considered and passed by US Congress at the end of this year or in 2008.

U.S. members of parliament reveal that the agreement will be passed unless it is adjusted. U.S. auto industry, in which Labor Union of auto industry and Ford is leading, still aggressively objects to this agreement. They argue that according to this agreement, U.S. will eliminate tariff on automation imported from South Korea while tariff of South Korea on U.S. automation is kept unchanged. Speaker Nancy Pelosi and presidential candidate Hillary Clinton of Democratic Party reckoned that the signed agreement will increase trade deficit, unemployment, and lessen competition of U.S. in the market.

At the same time, on June 30 and July 1st, farmers and workers of South Korea automation has organized strikes to reject to the FTA because 130,000 employees may loss their jobs.