On October 21, 2011, President Obama signed the Korea, Panama, and Columbia Free Trade Agreements. The U.S.-Korea trade deal is the largest bilateral free trade agreement ever negotiated by the U.S. Experts have estimated that it will increase U.S. exports to South Korea by $11 billion and help support up to 70,000 American jobs. The agreement is wide-ranging, affecting many specific industries and services, and addresses a multitude of topics in addition to the standard trade and tariff matters, including immigration procedures, labor standards, intellectual property protections, and environmental matters.
The U.S-Korea FTA dramatically cuts tariffs across many sectors of the economy. In particular, once ratified in the Republic of Korea (expected to happen quickly), the South Korean market will be opened up to U.S. automotive manufacturers, both OEMs and suppliers. As reported by the Industry Trade Advisory Committee on Automotive Equipment and Capital Goods (the “Advisory Committee”), the FTA does more than just slash import duties. It also addresses many important non-tariff import issues, such as how hybrid vehicles are to be classified, and at least simplifying taxes now targeted at vehicles with larger displacement engines (which disproportionately affect U.S. imports).
Please see full publication below for more information.
