Korea-US FTA

The Free Trade Agreement between the Republic of Korea and the United States of America (KorUS FTA) is a free trade agreement with a supplemental agreement in December 2010 ratified by U.S. Congress and the Korean National Assembly in October and November 2011, respectively.

The KorUS FTA entered into force on March 15, 2012. Korea is the only country which has entered into free trade agreements with the European Union and the United States.

But opponents including the Democratic United Party (DUP, 민주통합당) still argue the KorUS FTA should be renegotiated in the near future. On the other hand, it is also true that Japan is stimulated to proceed to the Trans-Pacific Partnership (TPP, 환태평양경제동반자협정) in 2012 and ahead.

Timeline of KorUS FTA
See the general description of KorUS FTA here.
 * Jun. 2007 first signed by representatives of both countries
 * Dec. 2010 agreed to a supplemental agreement specifying items in the June 30th KorUS FTA to be amended or updated
 * Oct. 2011 approved by U.S. Congress
 * Oct. 2011 the U.S.-Korea Free Trade Agreement Implementation Act was enacted.
 * Nov. 2011 ratified by the National Assembly
 * Nov. 29, 2011 FTA implementing legislation was signed by President Lee Myung-bak
 * Mar. 15, 2012 the KorUS FTA came into force

Table of Contents
KorUS FTA cosists of the following chapters and annexes. See the Korean full text and detailed explanation here.

Preamble
The Government of the Republic of Korea (Korea) and the Government of the United States of America (United States) (the Parties):

Recognizing their longstanding and strong partnership, and desiring to strengthen their close economic relations;

Convinced that a free trade area will create an expanded and secure market for goods and services in their territories and a stable and predictable environment for investment, thus enhancing the competitiveness of their firms in global markets;

Desiring to raise living standards, promote economic growth and stability, create new employment opportunities, and improve the general welfare in their territories by liberalizing and expanding trade and investment between their territories;

Seeking to establish clear and mutually advantageous rules governing their trade and investment and to reduce or eliminate the barriers to trade and investment between their territories;

Agreeing that foreign investors are not hereby accorded greater substantive rights with respect to investment protections than domestic investors under domestic law where, as in the United States, protections of investor rights under domestic law equal or exceed those set forth in this Agreement;

Resolved to contribute to the harmonious development and expansion of world trade by removing obstacles to trade through the creation of a free trade area and to avoid creating new barriers to trade or investment between their territories that could reduce the benefits of this Agreement;

Desiring to strengthen the development and enforcement of labor and environmental laws and policies, promote basic workers’ rights and sustainable development, and implement this Agreement in a manner consistent with environmental protection and conservation;

Building on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and other multilateral, regional, and bilateral agreements and arrangements to which they are both parties; and

Committed to furthering their economic leadership in the Asia Pacific region, in particular by seeking to reduce barriers to trade and investment in the region;

HAVE AGREED as follows:

Main Body
1. Initial Provisions and Definitions

2. National Treatment and Market Access for Goods
 * Annex 2-A National Treatment and Import and Export Restrictions
 * Annex 2-B Tariff Elimination
 * Korea General Notes
 * Korea Tariff Schedule
 * Appendix 2-B-1 Korea Tariff Rate Quotas
 * US General Notes
 * US Tariff Schedule
 * Appendix 2-B-1US Tariff Rate Quotas

3. Agriculture
 * Annex 3-A Agricultural Safeguard Measures

4. Textiles and Apparel
 * Annex 4-A Specific Rules of Origin for Textile or Apparel Goods
 * Annex 4-B Fibers, Yarns, and Fabrics Not Available in Commercial Quantities
 * Appendix 4-B-1 Fibers, Yarns, and Fabrics Not Available in Commercial Quantities

5. Pharmaceutical Products and Medical Devices
 * Confirmation letter (Independent Review Process) Korea & United States

6. Rules of Origin and Origin Procedures
 * Annex 6-A Specific Rules of Origin
 * Appendix 6-A-1 Correlation Table for Footwear
 * Annex 6-B Exceptions to Article 6.6

7. Customs Administration and Trade Facilitation

8. Sanitary and Phytosanitary Measures

9. Technical Barriers to Trade
 * Annex 9-A Committee on Technical Barriers to Trade
 * Annex 9-B Automotive Working Group
 * Confirmation letter (Specific Autos Regulatory Issues) Korea & United States

10. Trade Remedies

11. Investment
 * Annex 11-A Customary International Law
 * Annex 11-B Expropriation
 * Annex 11-C Service of Documents on a Party under Section B
 * Annex 11-D Possibility of a Bilateral Appellate Mechanism
 * Annex 11-E Submission of a Claim to Arbitration
 * Annex 11-F Taxation and Expropriation
 * Annex 11-G Transfers
 * Confirmation letter (Property Rights) Korea & United States

12. Cross-Border Trade in Services
 * Annex 12-A Professional Services
 * Appendix 12-A-1 Sectors for Mutual Recognition and Temporary Licensing
 * Annex 12-B Express Delivery Services
 * Annex 12-C Consultations Regarding Non-Conforming Measures Maintained by a Regional Level of Government
 * Confirmation letter (Understandings of both sides) Korea & United States
 * Confirmation letter (Gambling) Korea & United States
 * Confirmation letter (Express Delivery Services-International Delivery) Korea & United States
 * Confirmation letter (PIT test) Korea & United States

13. Financial Services
 * Annex 13-A Cross-Border Trade
 * Annex 13-B Specific Commitments
 * Annex 13-C Financial Services Committee
 * Annex 13-D Supply of Insurance by the Postal Services to the Public
 * Confirmation letter (Cross-border Trade, New Financial Services etc.)United States  Korea

14. Telecommunications
 * Annex 14-A Suppliers of Public Telecommunications Services
 * Annex 14-B Additional Obligations Relating to Major Supplies

15. Electronic Commerce

16. Competition-Related Matters

17. Government Procurement
 * Annex 17-A: Government Procurement

18. Intellectual Property Rights
 * Confirmation letter (Internet Service Provider) Korea & United States
 * Confirmation letter (Promoting Protection and Effective Enforcement of Copyrighted works on University Campuses) Korea & United States
 * Confirmation letter (Online Piracy Prevention) Korea & United States
 * Confirmation letter (Dispute Settlement Regarding Patent Linkage) United States & Korea

19. Labor
 * Annex 19-A: Labor Cooperation Mechanism
 * Confirmation letter (Public Communication) United States & Korea

20. Environment
 * Confirmation letter (Public Participation) United States & Korea
 * Confirmation letter (Equivalence in Environmental Laws) Korea & United States

21. Transparency

22. Institutional Provisions and Dispute Settlement
 * Annex 22-A: Alternative Procedures for Disputes Concerning Motor Vehicles
 * Annex 22-B: Committee on Outward Processing Zones on the Korean Peninsula
 * Annex 22-C: Fisheries Committee

23. Exceptions

24. Final Provisions

Annexes and Letters
Annex I (Non-conforming measures for services and investment)
 * Explanatory Notes
 * Korea
 * United States Appendix I-A

Annex II (Non-conforming measures for services and investment)
 * Explanatory Notes
 * Korea Appendix II-A
 * United States Appendix II-A

Annex III (Non-conforming measures for financial services)
 * Korea Appendix III-A
 * United States

Letter
 * Letter (Fibers, Yarns, and Fabrics Not Available in Commercial Quantities) United States
 * Letter (Express Delivery Services-Domestic Reform) Korea
 * Letter (Access to and Use of the Internet) United States  Korea
 * Letter (Publication) Korea & United States
 * Letter (Dispute Settlement for Labor/Environment) United States & Korea