US-Korea FTA Will Take Effect March 15th

The U.S. and Korean governments announced Tuesday that the long-awaited free-trade agreement between the two nations will take effect March 15th. Congress approved the FTA in October after languishing for years along with similar agreements with Colombia and Panama, after changes were made to the original agreements.

The Colombia agreement was signed in 2006, and the Korea and Panama deals were signed in 2007, but they were never submitted to Congress for approval. Concerns over some of the terms, notably labor rights issues in Colombia and Panama, and access to the auto market in Korea, caused the delay in enactment.

The following is a statement from the U.S. Trade Representative:
United States Trade Representative Ron Kirk announced today that the U.S.-Korea trade agreement will take effect on March 15th, 2012. This announcement follows the completion over the President's Day weekend of work by the United States and Korea to review each other's laws and regulations related to the implementation of the agreement. The United States 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.

"In a few short weeks, the promise of the U.S.-Korea trade agreement - including tens of thousands of export-supported jobs with better wages - will start to come home for American businesses and working families," said Ambassador Kirk. "President Obama insisted that we get this agreement right by forging a better deal that led to strong bipartisan support in both houses of Congress. Entry into force of this agreement will open up Korea's $1 trillion economy for America's workers, businesses, farmers, and ranchers while also strengthening our economic partnership with a key Asia-Pacific ally."

On March 15th, almost 80 percent 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.

Also on March 15th, almost 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.

The agreement also includes a number of significant commitments related to non-tariff measures that will also come into force on March 15th, including obligations related to motor vehicle safety and environmental standards, enhanced regulatory transparency, standard-setting, technology neutrality, and customs administration. Strengthened protections for intellectual property rights benefiting American creators and innovators will also come into force on that day. Finally, commitments opening up Korea's $580 billion services market will also be in effect beginning March 15th.

These commitments are backed by the agreement's strong enforcement provisions, which will enable the United States to hold Korea to its promises under the pact.

If you have any questions concerning the US-Korea Free Trade Agreement, or want to know if your goods are eligible to receive benefits under this program, please contact OHL Trade Services at tradeservices@ohl.com.