US - South Korea Free Trade Agreement Changes Published
/Details on the changes made to the US - Korea free trade agreement have now been published.(1) The renegotiated agreement covers areas such as automobiles, customs processes, and investment, as well as the recent US steel and aluminum tariffs. Some of the key new outcomes include(2):
- Korea will extend the phase out of the 25% US tariff on trucks until 2041
- Korea will double the number of US automobile exports, to 50,000 cars per manufacturer per year, that can meet US safety standards and enter the Korean market without further modification
- US gasoline engine vehicle exports will be able to show compliance with Korea's emission standards using the same tests they conduct to show compliance with US regulations
- Korea will recognize US standards for auto parts necessary to service US vehicles and reduce labeling burdens for parts
- Agreement was reached on conducting verification of origin of exports under KORUS
Click here for the document that provides the KORUS text change details.
References:
- (1) USTR: "Protocol between the Government of the United States of America and the Government of the Republic of Korea Amending the Free Trade Agreement between the United States of America and the Republic of Korea"
- (2) USTR Press Office: "New US Trade Policy and National Security Outcomes with the Republic of Korea"
- Office of the United States Trade Representative (USTR)
