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KORUS
Korea-US FTA
 Interactive trade indicators

Technical notes for performance indicators
Performance Indicators :
Member Countries

Korea, Rep.of United States

Free Trade Agreement between the United States of America and the Republic of Korea
Status : Signed in 2007 .  In force since 2012
Scope : Bilateral
Type : Free Trade Agreement
WTO Notification : GATT Art XXIV, GATS Art V 2012
Agreement text : 
http://www.ustr.gov/sites/default/files/uploads/agreements/fta/korus/asset_upload_file755_12697.pdf
Other links : 
http://www.ustr.gov/trade-agreements/free-trade-agreements/korus-fta/final-text
WTO consideration process : 
Factual Presentation not distributed
GOODS
Tariffs
Tariff concession from Korea will cover 99.7% of goods trade (with immediate effect for 80.4%) and from the US 100% (immediate effct for 82.1%)

ROK agrees to address specific auto non-traiff barriers. Reciprocal duty-free access form most textile and clothing goods.
Rules of Origin

The FTA adopts the "yarn forward" rule.
Contingency Measures
   Anti - Dumping : 
   Countervailing Duties : 
   Safeguards : Special textile safeguard allowing the US to impose tariffs on certain goods should injury occur due to import surges.

Standards : strong binding to WTO commitments and establishes a bilateral committee to strenghten FTA and WTO commitments on TBT. Chapter 8 and 9 cover SPS and TBT
Notes:
Nearly 95 per cent of bilateral trade in consumer and industrial products becomes duty-free within three years of entry into force of the Agreement.The reminder will be phased out over three to 15 years. Brief summary of the agreement is avaialble at http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2007/asset_upload_file355_11035.pdf
SERVICES
WTO Notification (GATS Art. V) : Notified
       Date of notification 15/03/2012
       Consideration Process : Under Consideration
Liberalization Approach : Negative Lists

Modes Covered
Cross-border supply (Mode1)
 Consumption abroad (Mode2)
 Presence of natural persons (Mode4)
Specific Chapters on
Financial services
Professional services
Other
              This agreement does specify express delivery services on Annex 12-B
Specific Sectors Excluded
Air transport

Public Sectors carve-out : GATS-like (Article I:3(b))

Most Favoured Nation : Binding

National Treatment : Binding

Market Access : Binding

Domestic Regulation : Non-binding (NAFTA-like)

Subsidies covered by services disciplines : Not covered

Denial of benefits for commercial presence :
          n.a

Notes :
          

Link to schedules :
INVESTMENT
Scheduling Approach : Negative Lists

Definition of investment : Covers portfolio investment

Most Favoured Nation : Binding
                           
National Treatment : Binding
                           NT provision applies to entry and establishment rights
Fair and Equitable Treatment : Binding
                           Clarifying text on FET
Expropriation : Binding
                           Clarifying text
Board of Directors and executive personnel : Binding

Invester - State arbitration :

Denial of Benefits :
          ARTICLE 11.11: DENIAL OF BENEFITS 1. A Party may deny the benefits of this Chapter to an investor of the other Party that is an enterprise of such other Party and to investments of that investor if persons of a non-Party own or control the enterprise and the denying Party: ... 2. A Party may deny the benefits of this Chapter to an investor of the other Party that is an enterprise of such other Party and to investments of that investor if the enterprise has no substantial business activities in the territory of the other Party and persons of a non-Party, or of the denying Party, own or control the enterprise. If, before denying the benefits of this Chapter, the denying Party knows that the enterprise has no substantial business activities in the territory of the other Party and that persons of a non-Party, or of the denying Party, own or control the enterprise, the denying Party shall, to the extent practicable, notify the other Party before denying the benefits. If the denying Party provides such notice, it shall consult with the other Party at the other Party’s request.

Additional BIT exists between the parties :
          BIT list I :
                    Status:
          BIT list II :
                    Status:

Notes :
          

Link to schedules :
TRADE FACILITATION
Customs procedures : Yes Article 1, Article 4 and Chapter 7
Customs valuation : Yes Article 1
Trade regulations publication and administration (transparency) : Yes Article 7.1 in Chapter 7
E-Commerce / Paperless trade : Yes http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file816_12714.pdf
Cooperation in trade facilitation : No
OTHER AREAS
Government Procurement : Yes expanded access to government procurement contracts; building on and expanding the WTO Agreement on GP
Investment : Yes Establishes a stable legal framework for US investors to operate in ROK.
Competition Policy : Yes http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file193_12715.pdf
Intellectual Property : Yes Trademark protection for sound and scent markets and certification marks. Applies "first-in-time, first-in-right" to trademarke and geographic indications; protection of copyrights, patents and regulated products
Dispute Settlement : Yes Also contains innovative DSP for auto-related measures that violite the FTA.
Labor Mobility : Yes http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file934_12718.pdf
Labor and Environmental Standards : Yes Both parties reafrim their obligations to the ILO; inappropriate to weaken or reduce domestic labor protection to encourage trade or investmnet between the parties; each party to effectively enforce domestic environmental laws
Technical cooperation : No
Institutional mechanism : No http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file973_12721.pdf
Notes:
Includes strong transaprency obligations including to publish proposed regulations in advance and transaprency in operation of the FTA
RULES OF ORIGIN
Cumulation
Specific Process
Heading Change
De Minimis
Minimum Content
Drawback
Http Link
http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file680_12704.pdf
Notes
For textile and clothing: "Yarn forward" rule means that apparel using yarn and fabric from the US and ROK qualifies for preferential tariff treatment.
KORUS
Korea-US FTA

Member Countries
Korea, Rep.of
United States
Total: 2 countries

Free Trade Agreement between the United States of America and the Republic of Korea

Status : Signed in 2007 .  In force since 2012
Scope : Bilateral
Type : Free Trade Agreement
WTO Notification : GATT Art XXIV, GATS Art V 2012
Agreement text : 
http://www.ustr.gov/sites/default/files/uploads/agreements/fta/korus/asset_upload_file755_12697.pdf

Other links : 
http://www.ustr.gov/trade-agreements/free-trade-agreements/korus-fta/final-text

WTO consideration process : 
Factual Presentation not distributed
GOODS
Tariffs
Tariff concession from Korea will cover 99.7% of goods trade (with immediate effect for 80.4%) and from the US 100% (immediate effct for 82.1%)

ROK agrees to address specific auto non-traiff barriers. Reciprocal duty-free access form most textile and clothing goods.
Rules of Origin

The FTA adopts the "yarn forward" rule.

Contingency Measures
Anti - Dumping : 
Countervailing Duties : 
Safeguards : Special textile safeguard allowing the US to impose tariffs on certain goods should injury occur due to import surges.

Standards : strong binding to WTO commitments and establishes a bilateral committee to strenghten FTA and WTO commitments on TBT. Chapter 8 and 9 cover SPS and TBT

Notes:
Nearly 95 per cent of bilateral trade in consumer and industrial products becomes duty-free within three years of entry into force of the Agreement.The reminder will be phased out over three to 15 years. Brief summary of the agreement is avaialble at http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2007/asset_upload_file355_11035.pdf

SERVICES
WTO Notification (GATS Art. V) : Notified
Date of notification : 15/03/2012
Consideration Process : Under Consideration

Liberalization Approach : Negative Lists

Modes Covered
Cross - Border Supply : Yes
 Consumption Abroad : Yes
 Movement of Natural Persons : Yes

Specific Chapters on
Financial services : Yes
 Professional services : Yes
Other : Yes
This agreement does specify express delivery services on Annex 12-B
Specific Sectors Excluded
Air transport : Yes
Public Sectors carve-out : GATS-like (Article I:3(b))

Most Favoured Nation : Binding

National Treatment : Binding

Market Access : Binding

Domestic Regulation : Non-binding (NAFTA-like)

Subsidies covered by services disciplines : Not covered

Denial of benefits for commercial presence :
n.a

Notes:

Link to schedules :

INVESTMENT
Scheduling Approach : Negative Lists

Definition of investment : Covers portfolio investment

Most Favoured Nation : Binding

National Treatment : Binding

NT provision applies to entry and establishment rights : Yes

Fair and Equitable Treatment : Binding

Clarifying text on FET : Yes

Expropriation : Binding

Clarifying text : Yes

Board of Directors and executive personnel : Binding

Invester - State arbitration : Yes

Denial of Benefits :
ARTICLE 11.11: DENIAL OF BENEFITS 1. A Party may deny the benefits of this Chapter to an investor of the other Party that is an enterprise of such other Party and to investments of that investor if persons of a non-Party own or control the enterprise and the denying Party: ... 2. A Party may deny the benefits of this Chapter to an investor of the other Party that is an enterprise of such other Party and to investments of that investor if the enterprise has no substantial business activities in the territory of the other Party and persons of a non-Party, or of the denying Party, own or control the enterprise. If, before denying the benefits of this Chapter, the denying Party knows that the enterprise has no substantial business activities in the territory of the other Party and that persons of a non-Party, or of the denying Party, own or control the enterprise, the denying Party shall, to the extent practicable, notify the other Party before denying the benefits. If the denying Party provides such notice, it shall consult with the other Party at the other Party’s request.

Additional BIT exists between the parties :No

BIT list I :
Status:
BIT list II :
Status:

Notes :


Link to schedules :

TRADE FACILITATION
Customs procedures : Yes Article 1, Article 4 and Chapter 7
Customs valuation : Yes Article 1
Trade regulations publication and administration : Yes Article 7.1 in Chapter 7
Use of ICT : Yes http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file816_12714.pdf
Mobility of business people : No
Freedom of transit : No
Transport and logistics : No
Trade finance : No

OTHER AREAS
Government Procurement : Yes expanded access to government procurement contracts; building on and expanding the WTO Agreement on GP
Investment : Yes Establishes a stable legal framework for US investors to operate in ROK.
Competition Policy : Yes http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file193_12715.pdf
Intellectual Property : Yes Trademark protection for sound and scent markets and certification marks. Applies "first-in-time, first-in-right" to trademarke and geographic indications; protection of copyrights, patents and regulated products
Dispute Settlement : Yes Also contains innovative DSP for auto-related measures that violite the FTA.
Labor Mobility : Yes http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file934_12718.pdf
Labor and Environmental Standards : Yes Both parties reafrim their obligations to the ILO; inappropriate to weaken or reduce domestic labor protection to encourage trade or investmnet between the parties; each party to effectively enforce domestic environmental laws
Technical cooperation : No
Institutional mechanism : No http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file973_12721.pdf

Notes:
Includes strong transaprency obligations including to publish proposed regulations in advance and transaprency in operation of the FTA

RULES OF ORIGIN
Cumulation

Specific Process

Heading Change

De Minimis

Minimum Content

Drawback

Http Link
http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Final_Text/asset_upload_file680_12704.pdf

Notes
For textile and clothing: "Yarn forward" rule means that apparel using yarn and fabric from the US and ROK qualifies for preferential tariff treatment.
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