The United States and South Korea have reached a new free trade deal intended to help open the growing country's market to more American goods.

The agreement, which requires congressional approval, is one of the measures President Barack Obama hopes will boost the US economy and create more jobs.

The agreement is an integral part of the Obama administration's efforts to open foreign markets to US goods and services, create jobs, and doubling US exports over five years.

Tariffs on 95 percent of goods between the two countries will be lifted within five years.

It covers sectors from agriculture, green technology to aerospace and electronics.

Calling it a win-win for both countries, the US president said the agreement would help the struggling US economy.

Barack Obama, US President, said, "It will contribute significantly to achieving my goal of doubling US exports over the next five years. In fact its estimated that today's deal alone will increase American economic output by more than our last nine free trade agreements combined."

Obama says the deal further cements the strong alliance between Washington and Seoul, particularly at a time of heightened tension on the Korean peninsula.

Barack Obama, US President, said, "At a time in which there are increasing tensions on the Korean peninsula following the North's unprovoked attack on the South Korean people, today we are showing that the defense alliance and partnership of the United States and South Korea is stronger than ever."

In 2009, bilateral trade between the United States and South Korea totaled 66.7 billion dollars.

The US goods trade deficit with the country was 11 billion dollars in 2009, while the services trade surplus was 7.1 billion dollars in 2008.

It is estimated that the tariff cuts alone in the trade agreement will increase exports of American goods by 10 to 11 billion US dollars, which could serve as a timely help for the struggling US manufacturers.