Update on Status of USTR's Work to Implement Korea FTA
The Office of U.S. Trade Representative has stated that it was holding working-level meetings with Korea on December 19-20, 2011 to continue discussions related to the implementation of the U.S.-Korea Free Trade Agreement (KORUS), including a review of each other’s respective laws and regulations related to implementation.
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(Certain government work must occur before a Proclamation can be issued that amends the Harmonized Tariff Schedule for KORUS, including verifying compliance with FTA commitments and exchanging formal diplomatic notes.)
KORUS Not Expected on Jan 1, Some Talk of February Timeframe, Etc.
While the earliest KORUS could take effect is January 1, 2012, virtually no one is stating that KORUS will be implemented by then. Some officials are speculating on a February 2012 timeframe, others note that KORUS most certainly will be in effect before the Obamas travel to South Korea for a Nuclear Security Summit in March 2012. However, one trade source notes that some are now calling for additional technical work on the KORUS rules of origin, which would delay implementation of the FTA.
Many FTA Commitments Must be Reviewed
According to an USTR fact sheet, the U.S. must work cooperatively with Korea to review both countries’ laws and regulations, and ensure compliance with the obligations that will take effect on the day the FTA enters into force, including the pertinent obligations of the 2011 exchange of letters on autos. U.S. officials will also consult with Congress and U.S. stakeholders.
Exchange of Diplomatic Notes Must also Occur
After the compliance review, the exchange of formal diplomatic notes on the FTA must also occur before the Harmonized Tariff Schedule (HTS) can be amended by Proclamation.
Then President Can Issue Proclamation for Tariff Revisions, Product-Specific Rules, Etc.
Once these notes are exchanged, the President can issue a Proclamation containing specific tariff revisions and product-specific rules, and make additional administrative and regulatory changes covering issues such as customs and procurement.
An ITC official adds that its agency has asked the Administration to issue the Proclamation implementing the 2012 World Customs Organization-recommended and other tariff changes first, as the KORUS tariff changes are based on this anticipated 2012 version of the tariff schedule.
(See ITT's Online Archives 11112862 for most recent update on the implementation of KORUS.
See ITT's Online Archives 11101417 for summary of USTR fact sheet on "next steps" for implementation of Korea, Colombia and Panama FTAs. See ITT's Online Archives 11112214 for summary of Korean Parliament's approval of KORUS. See ITT's Online Archives 11102103 for summary of the President signing the KORUS implementing bill into law.
See ITT's Online Archives 11111719 for summary of WCO-recommended HTS changes and 11122017 for a reminder of those changes, which are now expected to be implemented in late January 2012.)
USTR press release (dated 12/19/11) is available here.