Efforts by the Korean government completes the final domestic procedure needed for the implementation of the U.S.-South Korea Free Trade Agreement
WASHINGTON, D.C., December 7, 2018 – Today, the Korean National Assembly ratified the revised U.S.-Korea Free Trade Agreement–the final domestic procedure needed for its implementation. This ratification comes after both countries began negotiating revisions to the original free trade deal – the KORUS FTA – in January.
South Korea, the U.S.’ seventh largest trading partner, fought hard to manage expectations for this agreement, especially after it achieved historical success when it was signed into effect in 2012 as the second largest trade deal since NAFTA. Even with the revisions to the original KORUS FTA, Washington, D.C.’s Korean Ministry of Trade, Industry and Energy (MOTIE) is confident that the economic trajectories will continue to see growth.
“We look forward to continuing our trade relationship with the U.S. as both countries will now be able to conduct business under more stable conditions,” said Kim Hyun-chong, minister for trade at MOTIE. “We are proud to have remained steadfast in our commitment to overcome political distractions and focus on the cultural, historical and social benefits of this agreement.”
Under the revised agreement:
- The U.S. will put a tariff of 25 percent on South Korean pickup truck imports.
- South Korea will double its 25,000-vehicle unit threshold for U.S. car imports that do not align with the country’s industry regulation. This decision will make it easier for 50,000 vehicles to enter South Korea.
- South Korea will apply eased vehicle emission standards to cars shipped between 2021 and 2025 when putting new import regulations in place.
- Both countries will make edits to the investor-state dispute settlement clause to improve transparency.
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