Free Trade Agreement with South Korea
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Issue Summary
On October 21, 2011, President Obama signed the implementing legislation for the long-awaited Free Trade Agreement (FTA) with South Korea, along with the Colombia and Panama FTAs and a host of other trade legislation. It may be many months, however, until the U.S.-Korea FTA goes into effect.
On November 22, the Korean National Assembly ratified the U.S.-Korea Free Trade Agreement (FTA) by 151 to 7, even though some Korean lawmakers were calling for renegotiation. With fears of physical altercations in the Assembly, members of President Lee Myung-bak’s Grand National Party called a snap plenary session in hopes of avoiding trouble. The FTA passed by a vote of 151 to 7, with 12 abstaining and 129 lawmakers missing. The opposition members voted against the bill, abstained, or were not present for the vote.
In a statement, U.S. Trade Representative Ambassador Ron Kirk said, “The United States welcomes the Korean National Assembly’s approval of the KORUS FTA. This is a win-win agreement that will provide significant economic and strategic benefits to both countries.”
USA-ITA Position
USA-ITA is a strong supporter of removing barriers to trade with South Korea, and welcomes the passage of the Free Trade Agreement and ratification by the Korean National Assembly. It will likely be several months before the FTA is implemented, however, and USA-ITA will keep a close watch on the developments.
Resources
U.S.-Korea Free Trade Agreement
U.S. Department of Commerce: Why a U.S.-Korea Free Trade Agreement?
U.S. Department of Commerce: FTA Tariff Tools
U.S. Customs & Border Protection: Info on Regulations/Customs for U.S.-Korea FTA
KOTRA Presentation from MAGIC and USA-ITA West Coast Seminar