Potential Economic Impact of KORUS FTA
If fully implemented, the U.S.-Korea Free Trade Agreement (FTA) is expected to affect the U.S.–Korea trade and investment relationship substantially, including bilateral trade in goods and services, procedures governing trade and investment, and the regulatory environment. Tariffs and tariff-rate quotas (TRQs) applied to U.S. exports to Korea are, on average, substantially larger than those applied to U.S. imports from Korea. Although Korea’s average ad valorem [in proportion to the value] equivalent tariffs (AVE tariffs) for manufacturing imports from the United States are typically less than 10 percent, tariffs and TRQs on many U.S. agricultural and food products exceed 30 percent….
