FTA

The United States - Korea Free Trade Agreements

11/01/2011    41

The United States and the Republic of Korea signed the United States-Korea Free Trade Agreement (KORUS FTA) on June 30, 2007. If approved, the Agreement would be the United States' most commercially significant free trade agreement in more than 16 years.

The U.S. International Trade Commission estimates that the reduction of Korean tariffs and tariff-rate quotas on goods alone would add $10 billion to $12 billion to annual U.S. Gross Domestic Product and around $10 billion to annual merchandise exports to Korea.

Under the FTA, nearly 95 percent of bilateral trade in consumer and industrial products would become duty free within three years of the date the FTA enters into force, and most remaining tariffs would be eliminated within 10 years. For agricultural products, the FTA would immediately eliminate or phase out tariffs and quotas on a broad range of products, with almost two-thirds (by value) of Korea's agriculture imports from the United States becoming duty free upon entry into force.

For services, the FTA would provide meaningful market access commitments that extend across virtually all major service sectors, including greater and more secure access for international delivery services and the opening up of the Korean market for foreign legal consulting services.

In the area of financial services, the FTA would increase access to the Korean market and ensure greater transparency and fair treatment for U.S. suppliers of financial services. The FTA would address nontariff barriers in a wide range of sectors and includes strong provisions on competition policy, labor and environment, and transparency and regulatory due process.

The KORUS FTA would also provide U.S. suppliers with greater access to the Korean government procurement market. In addition to strengthening our economic partnership, the KORUS FTA would help to solidify the two countries' long-standing geostrategic alliance.

As the first U.S. FTA with a North Asian partner, the KORUS FTA could be a model for trade agreements for the rest of the region, and underscore the U.S. commitment to, and engagement in, the Asia-Pacific region.
The Obama Administration will seek to promptly and effectively address the issues surrounding the KORUS FTA, including concerns that have been expressed regarding automotive trade.

Preamble
1. Initial Provisions and General Definitions

2. National Treatment and Market Access for Goods

  • United States General Notes
  • United States Appendix I
  • Colombia General Notes 
  • Colombia Appendix I
    US Tariff Schedule (Industrial and Textiles)
  • United States Tariff Schedule (Agricultural Goods)
  • Colombia Tariff Schedule (Industrial and Textiles)
  • Colombia Tariff Schedule (Agricultural Goods)
  • ITA Side Letter

3. Textiles and Apparel

4. Rules of Origin and Origin Procedures

  • Annex - Product Specific Rules

5. Customs Administration and Trade Facilitation

6. Sanitary and Phytosanitary Measures

  •  February SPS Letter Exchange
  •  August SPS Letter Exchange
  •  Other SPS Letter Exchange

7. Technical Barriers to Trade

8. Trade Remedies

9. Government Procurement

  • Annex 9.1
  • Side Letter on 30-Day Tendering
  • Side Letter Regarding Interim Measures

10. Investment
11. Cross-Border Trade In Services

  •  Side Letter on State Measures

12. Financial Services

  •  Understanding Regarding Financial Services and Services

13. Competition Policy
14. Telecommunications
15. Electronic Commerce
16. Intellectual Property Rights

  • ISP Side Letter
  • Retransmission Side Letter
  • Side Letter Concerning Patents and Certain Regulated Products

17. Labor
18. Environment
19. Transparency
20. Administration of the Agreement and Trade Capacity Building
21. Dispute Settlement
22. Exceptions
23. Final Provisions
Annex I: Non-Conforming Measures for Services and Investment

  • Formatting Note
  • US Annex I
  • Colombia Annex I

Annex II: Non-Conforming Measures for Services and Investment

  • Formatting Note
  • US Annex II
  • Colombia Annex II

Annex III: Non-Conforming Measur2es for Financial Services

  • US Annex III (with Formatting Note)
  • Colombia Annex III (with Formatting Note)

Biotechnology TK Understanding
 
Download the Agreement at the link: http://www.ustr.gov/trade-agreements/free-trade-
agreements/korus-fta/final-text

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