FTA implementing legislation

On November 29, 2011, despite continued opposition protests in South Korea, President Lee Myung-bak signed the fourteen bills that would enable the implementation of the Korea–United States Free Trade Agreement (KorUS FTA).

Likewise, the United States enacted the United States-Korea Free Trade Agreement Implementation Act (자유무역협정 이행법, H.R. 3080) in October 2011, which will authorize the U.S. President to proclaim specified tariff modifications.

Subject to the preparatory negotiations between both parties, KorUS FTA is expected to come into force on January 1, 2012.

Key words
FTA, Implementation Act, legislation, ISD

List of KorUS-related Bills
In order to implement KorUS FTA in a proper manner, Korea is required to legislate each amendment to the following 14 Acts, which were passed by the National Assembly on November 22, 2011 right after the floor vote to ratify the KorUS FTA:
 * Special Consumption Tax Act (개별소비세법)
 * Act on Special Cases of Customs Act to Implement the FTA (자유무역협정의 이행을 위한 관세법의 특례에 관한 법률)
 * Local Tax Act (지방세법)
 * Administrative Procedure Act (행정절차법)
 * Copyright Act (저작권법)
 * Design Protection Act (디자인보호법)
 * Act on the Unfair Competition Prevention and Trade Secret Protection (부정경쟁방지 및 영업비밀보호에 관한 법률)
 * Trademark Act (상표법)
 * Utility Model Act (실용신안법)
 * Act on Post Office Deposit and Insurance (우체국예금ㆍ보험에 관한 법률)
 * Postal service Act (우편법)
 * Patent Act (특허법)
 * Pharmacy Act (약사법)
 * Monopoly Regulation and Fair Trade Act (독점규제 및 공정거래에 관한 법률)

Besides the above-mentioned Acts, there took place FTA-related legislation including the Whole Amendment to the Special Act on Assistance to Farmers, Fishermen, etc. following the Conclusion of Free Trade Agreements (Alternative).

Comments regarding Sec. 102 of H.R. 3080
In Korea, KorUS FTA opponents are criticizing the problem posed by the captioned section of the U.S. FTA Implementation Act.

'''Sec. 102. Relationship of the Agreement to United States and State Law.'''
 * (a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.—
 * (1) United States Law to Prevail in Conflict — No provision of the Agreement, nor the application of any such provision to any person or circumstance, which is inconsistent with any law of the United States shall have effect.
 * (2) Construction. — Nothing in this Act shall be construed—
 * (A) to amend or modify any law of the United States, or
 * (B) to limit any authority conferred under any law of the United States, unless specifically provided for in this Act.
 * (b) RELATIONSHIP OF AGREEMENT TO STATE LAW.—
 * (1) Legal Challenge — No State law, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the Agreement, except in an action brought by the United States for the purpose of declaring such law or application invalid.
 * (2) Definition of State Law — For purposes of this subsection, the term ‘‘State law’’ includes—
 * (A) any law of a political subdivision of a State; and
 * (B) any State law regulating or taxing the business of insurance.
 * (c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES.— No person other than the United States—
 * (1) shall have any cause of action or defense under the Agreement or by virtue of congressional approval thereof; or
 * (2) may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of the United States, any State, or any political subdivision of a State, on the ground that such action or inaction is inconsistent with the Agreement.

However, the above criticism goes too far because the Sec. 102 is included in almost all Foreign Trade Agreements and no more differentiating only the Republic of Korea. It should be noted that the 10th Amendment of the U.S. Constitution provides "the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the State respectively, or to the people." In other words, the imports from foreign countries including Korea are subject to the tax authority of the State government rather than the Federal government. The Federal government has only to demand the State government shall not violate the FTA provisions under the Interstate Commerce clause.