US Trade Representative: "Korean Trade Barriers Decreased Compared to Previous Year"

Announcement of the 2020 'Country-specific Trade Barrier Report'

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The United States Trade Representative (USTR) once again positively evaluated the achievements of the revised Korea-US Free Trade Agreement (FTA) and assessed that trade barriers have decreased compared to the previous year.

According to the Ministry of Trade, Industry and Energy on the 1st, the USTR released the 2020 "National Trade Estimate Report on Foreign Trade Barriers" on the 31st of last month (local time).

In the report, the USTR positively evaluated the revised Korea-US FTA negotiations that took effect last January.

It also objectively assessed and described the progress made regarding Korea's trade barriers and the issues of interest to the US side.

Major US concerns such as drug pricing, automotive environmental standards, competition policy, and digital trade were mentioned at levels similar to previous years.

Some issues reflecting the conclusion of the WTO verification consultations on rice tariffization with Korea were removed, indicating that these will not be raised as problems for the time being.

According to the Ministry, Korea set the rice tariff rate at 513% in 2014 and notified the WTO, then held verification consultations with five countries that raised objections: the US, China, Vietnam, Thailand, and Australia.

As a result, a final agreement on the 513% tariff rate was reached in December last year.

An official from the Ministry said, "We will carefully analyze and prepare countermeasures through consultations with domestic stakeholders and relevant ministries regarding the issues raised in the report," adding, "We plan to closely consult with the US side using various implementation committees and consultation channels under the Korea-US FTA."

The USTR publishes this report annually in accordance with Section 181 of the Trade Act of 1974.

Based on difficulties raised by US companies, organizations, and other stakeholders in entering overseas markets, it evaluates trade barriers of more than 60 major trading partners including Korea, China, the European Union (EU), and Japan.

This content was produced with the assistance of AI translation services.