Why a U.S.-Korea Trade Agreement?
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Read the Transcript: Remarks by the President at the Announcement of a U.S.-Korea Free Trade Agreement
The U.S.-Korea Trade Agreement (KORUS Agreement) is an integral part of the President’s efforts to increase opportunities for U.S. businesses, farmers and workers through improved access for their products and services in foreign markets. The KORUS Agreement supports the President’s National Export Initiative goal of doubling of U.S. exports in five years. It would also promote the further integration of the U.S. and Korean economies and enhance the competitiveness of U.S. businesses in the world’s 12th largest economy.
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 up to $11 billion in annual merchandise exports to Korea. The agreement will support tens of thousands of American jobs.
Under the KORUS Agreement, over 95 percent of bilateral trade in consumer and industrial products would become duty free within five years of the date the agreement enters into force, and most remaining tariffs would be eliminated within 10 years.
For agricultural products, the KORUS Agreement 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.
The KORUS Agreement would also open Korea’s $560 billion services market to highly competitive American companies, supporting jobs for American workers in sectors ranging from delivery and telecommunications services to education and health care services.
At this time, the KORUS Agreement is currently not in force. It will need to be cleared through both countries’ legislatures prior to entering into force.
- Overview of the Agreement
- Economic value of the Agreement
- Increasing U.S. Auto Exports and Growing U.S. Jobs Through the U.S. Korea Trade Agreement
Statements of Support:
- Statements of Support for the U.S-Korea Trade Agreement
- Additional Statements of Support for the U.S.-Korea Trade Agreement
- White House Blog by Amb. Kirk on the Agreement
- Manufacturing Council Letter of Support
Secretary Locke Leads Congressional Delegation to Korea
- Secretary Locke and Congressional Delegation Conclude Productive South Korea Meetings
- Secretary Locke and Congressional Delegation Met With Korean President Lee to Discuss U.S.-Korea Commercial Relationship
- Secretary Locke and Members of Congress Tour Pantech and Meet with U.S. Businesses in Korea
- Guest blog by President of the American Chamber of Commerce in Korea Amy Jackson
- Guest blog by Congressman Jim McDermott,
- Guest blog by President/ CEO of Varian Medical Systems Timothy Guertin
- Secretary Locke’s editorial in The Hill
- KORUS Industry Opportunity Reports Main Site
- Agricultural Equipment
- Building Products
- Construction Equipment
- Consumer Goods
- Electrical Equipment
- Environmental Goods
- Fish and Fish Products
- Footwear and Travel Goods
- Information and Communications Technologies
- Medical Equipment
- Metals and Ores
- Paper and Paper Products
- Scientific Equipment
- Shipping and Transportation Equipment
- Textiles and Apparel
- Wood and Lumber
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
- Full text of the Agreement (2007)
- US-Korea Trade Agreement at the U.S. Trade Representative
- U.S. Commercial Service in Korea
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