Failed attempts to forcefully stop free trade deal in South Korea may allow the ratification of the pack and a subsequent boost to the economy and South Korea’s exchange traded fund (ETF).
On Thursday, members of the opposition Democratic Party tried to physically stop the potential free trade agreement with the United States, reports Martin Fackler for The New York Times. The ratification of the pact is expected to improve South Korea’s competitiveness and ties with the United States. But opponents say it will hurt South Korean farmers.
The scuffle failed to prevent the pact from being formally introduced to the committee, where it will be steps away from a full parliamentary vote.
Another deal to lower tariffs and other trade barriers was signed last year by representatives from South Korea and the United States but is under pending ratification by lawmakers in both nations. The U.S. Congress has opposed this, citing disadvantages to struggling American automakers.
- iShares MSCI South Korea (EWY) is currently down 53.3% year-to-date
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