USTR Says U.S.- Korea FTA to Take Effect on March 15
United States Trade Representative Ron Kirk has announced that the U.S.-Korea free trade agreement (KORUS) will enter into force on March 15, 2012. The agreement, among other commitments, includes steps toward agricultural and industrial tariff liberalization, obligations on non-tariff measures and intellectual property rights (IPR), and enforcement provisions. ITC sources add that the drafting of the proclamation to amend the HTS for KORUS is underway.
Announcement Follows Review of Regs Related to Implementation
This announcement follows the completion over the President’s Day weekend of work by the U.S. and Korea to review each other’s laws and regulations related to the implementation of KORUS. The U.S. has exchanged diplomatic notes with Korea in which each side confirmed that they had completed their applicable legal requirements and procedures for the agreement’s entry into force.
HTS Changes, Duty Benefits to be Implemented by Proclamation
According to sources at the International Trade Commission, agency attorneys are currently working on the proclamation to amend the Harmonized Tariff Schedule (HTS) to implement KORUS duty benefits for products of Korea.
Officials add that staff is also working on an agreement on how changes to the KORUS HTS rules of origin, that were negotiated some time ago, can be updated for the 2007 and 2012 World Customs Organization (WCO)-recommended tariff changes that have been implemented.
Agreement to Liberalize Tariffs on Industrial and Agricultural Products
USTR indicates that, on March 15, 2012, (the effective date) almost 80% of U.S. exports of industrial products to Korea will become duty-free, including aerospace equipment, agricultural equipment, auto parts, building products, chemicals, consumer goods, electrical equipment, environmental goods, all footwear and travel goods, paper products, scientific equipment and shipping and transportation equipment.
USTR also states that, on March 15, two-thirds of U.S. exports of agricultural products to Korea will become duty-free, including wheat, corn, soybeans for crushing, whey for feed use, hides and skins, cotton, cherries, pistachios, almonds, orange juice, grape juice, and wine.
KORUS Includes Commitments on Non-Tariff Measures & IPR, Enforcement
In addition to tariff liberalization, USTR identifies a number of commitments related to non-tariff measures that will also come into force on March 15, including obligations related to motor vehicle safety and environmental standards, enhanced regulatory transparency, standard-setting, technology neutrality, and customs administration.
USTR also highlights strengthened protections for intellectual property rights, commitments opening up Korea’s $580 billion services market, and strong enforcement provisions.
(See ITT’s Online Archives 11100617 and 12011010 for information on obtaining product duty rates under KORUS and final text of the trade agreement.
See ITT’s Online Archives 11100417, 11101306, and 11102103, respectively, for summary of (1) submission of implementing bill to Congress, (2) passage by Congress, and (3) Obama’s signing of the implementing bills for the KORUS, Colombia and Panama FTAs (the latter two do not have announced effective dates).
See ITT’s Online Archives 11061422 for summary of CRS report on the 2010 auto-specific modifications to KORUS, including gradual bilateral elimination of tariffs, harmonization of standards, and provision for U.S. safeguards in the event of a surge in imports from Korea.)
USTR press release (dated 02/21/2012) here.