《Free Trade with Korea - Detailed Summary of the KORUS FTA》.pdf

Trade Facts Office of the United States Trade Representative April 2007 Free Trade with Korea Summary of the KORUS FTA The United States concluded an historic agreement with the Republic of Korea on April 1, 2007. This comprehensive trade agreement will eliminate tariffs and other barriers to trade in goods and services, promote economic growth, and strengthen economic ties between the United States and Korea. A Gateway to Significant Markets Korea is a $1 trillion economy and is the United States’ 7th largest goods trading partner. In 2006, U.S. goods exports to Korea were $32.5 billion, an increase of 16.9 percent from the previous year. In 2005, U.S. foreign direct investment in Korea totaled roughly $18.8 billion and was concentrated largely in the manufacturing, banking, and wholesale trade sectors. Korea currently enjoys broad access to the U.S. market and the United States is Korea’s second largest market, importing 17 percent of Korea’s worldwide exported goods. New Market Access for U.S. Consumer and Industrial Products • Nearly 95 percent of bilateral trade in consumer and industrial products becomes duty-free within three years of entry into force of the Agreement, with virtually all remaining tariffs eliminated within 10 years. • Agreement to allow trade in remanufactured goods under the agreement. This will provide significant export and investment opportunities for U.S. firms involved in remanufactured products such as medical equipment, machinery, and auto parts. Increased Access for U.S. Autos • The agreement includes a broad range of focused provisions designed to open up Korea’s auto market to U.S. cars and ensure that U.S. cars have a fair opportunity to compete in Korea. • Eliminates the discriminatory aspects of Korea’s Special Consum