Nearly five years after its original signing, the
long-debated US-Korea FTA will enter into force on 15 March, despite continued
sparring in Seoul at both the public and political levels.
The March start date follows months of technical-level
talks between South Korean and US officials to review each side’s laws and
regulations.
Estimates from the US International Trade Commission
suggest that US agricultural exports would increase by anywhere between US$1.9
billion to $US3.8 billion as a result of the trade agreement. The deal is set
to slash tariffs on nearly two-thirds of US farm exports, and increase US goods
exports by approximately US$12 billion.
Under the pact, South Korea will also open up its US$580
billion services market. Seoul will eliminate its duties on almost 80 percent
of US industrial products.
The original accord was negotiated and signed under
former Korean President Roh Moo-hyun
and his counterpart, then-US President George W. Bush, in 2007. In response to
the concerns of US automakers, 2010 renegotiations included a safeguard
allowing increased duties for a decade after the US’s elimination of tariffs on
Korean auto products, in order to respond to surges in auto trade.
The deal in its current form, championed by Korea’s
ruling Grand National Party, contains amendments that the opposition claims
awards US carmakers an unfair inroad into the market. Fears that Korea would be
defenseless to protect its interests were further intensified by an
‘investor-state dispute clause’, which lets parties bypass domestic courts in favour of an international arbitration panel.