The US–South Korea Free Trade Agreement will go into full effect tomorrow, March 15, 2012. With this FTA, roughly 80% of US exports of industrial products to South Korea will be duty free, while two-thirds of US exports of agricultural products will also become duty-free.
The International Trade Commission estimates that the reduction of South Korean tariff and non-tariff quotas on goods alone will add between $10 and $12 billion to the annual US GDP, and around $10 billion to annual merchandise exports to South Korea. According to Ron Kirk, Ambassador of the U.S. Trade Representative, once the agreement goes into effect, it will open up South Korea’s $1 trillion economy and strengthen our economy’s partnership with a key Asia Pacific Ally. To read more about the new free trade agreement, click here.
Is your company prepared to take advantage of this duty-saving opportunity?
The most common reason companies do not take advantage of FTAs is the administrative burden of identifying applicable FTAs and qualifying products. With over 100 FTAs in place around the world, manually administering trade agreements is understandably difficult. Global Trade Management solutions, however, can help you manage the solicitation and qualification process with your suppliers.
To find out how your company can automate this complex process and take advantage of the US-South Korea Free Trade Agreement, check out Amber Road’s Trade Agreement Management solution.