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KORUS FTA Enters into Force on March 15 |
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The KORUS (Korea-US) FTA entered into force in both countries on March 15, 2012 (Korea and US Standard Time).
The KORUS FTA took effect, as the two countries had exchanged diplomatic notes, notifying each other that they had completed their respective applicable legal requirements and procedures, and agreed to bring the FTA into force on March 15, 2012, pursuant to Article 24.5.1 of the FTA.
The ROK government published the KORUS FTA in its official gazette dated March 12.
The ROK government confirmed that the US government, in accordance with the KORUS FTA Implementation Act, had taken administrative steps necessary for the FTA’s entry into force, including a presidential proclamation on March 9 and the completion of relevant regulations of the Bureau of Customs and Border Protection on March 12 and the Committee for the Implementation of Textile Agreements.
The text of the KORUS FTA consists of a preamble, a main body of 24 chapters, and annexes, including the text of the Agreement signed on June 30, 2007 and the diplomatic notes exchanged on February 10, 2011, covering a wide range of fields, including manufactured goods, services and investment, government procurement, intellectual property rights, labor and environment.
The FTA is forecast to help increase the ROK’s GDP by 5.7 percent and create 350,000 jobs in the next 10 years.
Lower tariff, exemption of merchandise processing fees, curtailed transaction costs and streamlined customs clearance procedure are expected to allow ROK companies easier access to the US market; consumers in the ROK more choices; and eased price burden on consumers.
The KORUS FTA -- the ROK’s eighth FTA and one with its largest trading partners and the world’s largest market -- is expected to give the ROK the benefit of preempting the US market and to contribute to expanding the scope of the bilateral alliance to include not only military and security, but also economy.
With the conclusion of the FTA, the ROK saw tangible progress in forging FTAs with large, advanced economies, such as the US and the EU, the priority destinations of the ROK’s FTA roadmap drawn up in September 2003. The FTA is seen to have laid the groundwork for the ROK to lead FTA discussions with its largest and 2nd-largest trading partners, China and Japan, on the path toward becoming the FTA hub in East Asia and completing a global FTA network.
With the KORUS FTA now in force, the ROK and the US plan to continue consultations on the FTA implementation through various channels, including Joint Committee of Trade Ministers, other committees and working groups to be composed under the Agreement.
MOFAT Spokesperson’s Statement
on the Effectuation of the KORUS FTA on March 15
The Government of the Republic of Korea hails the effectuation of the KORUS (Korea-US) FTA on March 15.
The FTA with the US, the world’s largest market and the ROK’s key trading partner, is expected to give the ROK the benefit of preempting the US market and to contribute to further solidifying the comprehensive strategic alliance between the two countries.
The Government of the Republic of Korea will help its people and companies reap as many benefits as possible from the FTA by providing them with relevant information in the swiftest and most accurate manner possible. Also, it will make every effort for a seamless implementation of the additional assistance package for the sectors presumably vulnerable to the FTA.
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