The revised free trade agreement (FTA) between South Korea and the United States will take effect later this week, Seoul’s trade ministry said Monday.
The two sides would exchange a written notification Tuesday that they domestically completed legal and procedural requirements for the implementation of the revised free trade deal, according to the Ministry of Trade, Industry and Energy.
Seoul and Washington launched negotiations on the revised FTA in January, and reached an agreement, in principle, in late March. The South Korean parliament ratified the revised accord earlier this month. The Seoul ministry said South Korea and the United States rapidly amended the trade pact to reduce instability and stabilize trade and investment between the two countries.
The negotiations were launched as Washington demanded the amendment of its FTA with South Korea, which came into force in 2012. Under the revised pact, the United States will maintain a 25 percent tariff on pickup trucks, made by South Korean manufacturers, for another 20 years through 2041.
The number of U.S. vehicles, which are not required to meet South Korean safety standards as they met U.S. safety standards, will be increased to 50,000 units per year from the past 25,000.
South Korea will also apply the moderate emissions standard to U.S. cars when setting a new import standard for the 2021-2025 period. In return for it, South Korea revised the clauses on the investor-state dispute settlement (ISDS) to ban the abuse of that clause by U.S. multinationals.
Under the ISDS provision, investors can sue governments for discriminatory practices, but it was abused by some of multinational companies or speculative investors.
For the trade remedy, the United States would offer information on how to calculate anti-dumping or countervailing duties on South Korean companies to improve transparency.
The two sides would exchange a written notification Tuesday that they domestically completed legal and procedural requirements for the implementation of the revised free trade deal, according to the Ministry of Trade, Industry and Energy.
Seoul and Washington launched negotiations on the revised FTA in January, and reached an agreement, in principle, in late March. The South Korean parliament ratified the revised accord earlier this month. The Seoul ministry said South Korea and the United States rapidly amended the trade pact to reduce instability and stabilize trade and investment between the two countries.
The negotiations were launched as Washington demanded the amendment of its FTA with South Korea, which came into force in 2012. Under the revised pact, the United States will maintain a 25 percent tariff on pickup trucks, made by South Korean manufacturers, for another 20 years through 2041.
The number of U.S. vehicles, which are not required to meet South Korean safety standards as they met U.S. safety standards, will be increased to 50,000 units per year from the past 25,000.
South Korea will also apply the moderate emissions standard to U.S. cars when setting a new import standard for the 2021-2025 period. In return for it, South Korea revised the clauses on the investor-state dispute settlement (ISDS) to ban the abuse of that clause by U.S. multinationals.
Under the ISDS provision, investors can sue governments for discriminatory practices, but it was abused by some of multinational companies or speculative investors.
For the trade remedy, the United States would offer information on how to calculate anti-dumping or countervailing duties on South Korean companies to improve transparency.
