South Korea Passes KORUS
The South Korean National Assembly passed legislation last week ratifying the Korea-United States
free trade agreement (KORUS). After KORUS was passed by the U.S. Congress and signed by President
Barack Obama in October 2011, South Korea President Lee Myung-bak and his country's ruling Grand
National Party had been attempting to get the agreement ratified, but had faced strong opposition
from several parties, mainly over the inclusion of an investor-state dispute settlement provision
as well as the agricultural impact on Korean farmers.
KORUS is the United States' first FTA with a major Asian economy and the first since the North America Free Trade Agreement with a country that has a large developed textile sector that exports significant amounts of textile products to the United States. The U.S. textile and apparel industry's reaction to KORUS has been mixed. Proponents of KORUS, such as retailers and importers, say the agreement would create jobs and reduce trade barriers, making it easier for U.S. companies to export their goods overseas. Opponents of KORUS, such as U.S. textile manufacturers, charge that rather than creating jobs, the FTA would result in continued outsourcing and destroy jobs, because U.S. and Korean textile products are not treated equally under the agreement and removal of certain textile enforcement measures would enable significant illegal duty-free transshipments of Chinese-made goods. Additionally, KORUS requires the United States to reduce tariffs more quickly than South Korea, and opponents are concerned this does not allow U.S. suppliers the chance to adapt, and would favor the Korean industry in key products.
South Korea is the fifth-largest exporter of textile products to the United States, reports the United States-based National Council of Textile Organizations (NCTO); and the 10th-largest market for U.S. textile and apparel exports, reports the U.S. Department of Commerce's International Trade Administration.
United States Trade Representative (USTR) Ambassador Ron Kirk issued the following statement on South Korea's passage of KORUS:
"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. We look forward to working closely with the government of Korea to bring the agreement into force as soon as possible."
November 29, 2011
KORUS is the United States' first FTA with a major Asian economy and the first since the North America Free Trade Agreement with a country that has a large developed textile sector that exports significant amounts of textile products to the United States. The U.S. textile and apparel industry's reaction to KORUS has been mixed. Proponents of KORUS, such as retailers and importers, say the agreement would create jobs and reduce trade barriers, making it easier for U.S. companies to export their goods overseas. Opponents of KORUS, such as U.S. textile manufacturers, charge that rather than creating jobs, the FTA would result in continued outsourcing and destroy jobs, because U.S. and Korean textile products are not treated equally under the agreement and removal of certain textile enforcement measures would enable significant illegal duty-free transshipments of Chinese-made goods. Additionally, KORUS requires the United States to reduce tariffs more quickly than South Korea, and opponents are concerned this does not allow U.S. suppliers the chance to adapt, and would favor the Korean industry in key products.
South Korea is the fifth-largest exporter of textile products to the United States, reports the United States-based National Council of Textile Organizations (NCTO); and the 10th-largest market for U.S. textile and apparel exports, reports the U.S. Department of Commerce's International Trade Administration.
United States Trade Representative (USTR) Ambassador Ron Kirk issued the following statement on South Korea's passage of KORUS:
"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. We look forward to working closely with the government of Korea to bring the agreement into force as soon as possible."
November 29, 2011
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