U.S.-Korea Free Trade Agreement: Potential Economy-wide ... - USITC

exist.” 58 For example, the Korean government reportedly has mandated the licensing and use
of unique standards 59 and technologies developed by Korean research institutes and trade
associations that discriminate against U.S. suppliers of telecommunications products. 60 Also,
U.S. automotive industry officials assert that Korea imposes unique and overly stringent
emissions standards, 61 certification, and other regulatory requirements that are “out of sync
with international standards” 62 and that the Korea regulatory system lacks transparency. 63
U.S. industry officials assert that NTMs have made it difficult for U.S. and other foreign
automakers to achieve significant market share in Korea. 64
Other industries identified as adversely affected by Korean certification, testing, and other
standards-related practices include the cosmetics, nutrition products, electrical and gas
appliances, and manufacturing equipment industries. 65 Products particularly affected by
allegedly discriminatory labeling issues include pharmaceuticals, cosmetics, consumer
goods, alcoholic beverages, biotechnology, and agricultural and food products. 66
Summary of Provisions
Chapter 9 of the U.S.-Korea FTA would require both parties to intensify efforts to improve
transparency, enhance bilateral cooperation on standards-related issues, increase mutual
acceptance of one another’s regulations and procedures, and reduce or eliminate unnecessary
technical trade barriers. 67 The chapter would establish a Committee on Technical Barriers
to Trade, comprising representatives of each party, to monitor the implementation and
administration of the chapter and to address any issues arising from the other’s standards,
technical regulations, or conformity-assessment procedures. 68
To improve transparency, 69 the chapter would require each party to allow persons from the
other party to participate in the development of its standards, technical regulations, and
conformity assessment procedures; to transmit proposals for new technical regulations and
58 Dawson, testimony before the USITC, June 20, 2007, 109; and USKBC and the AMCHAM in Korea,
“U.S.-Korea Free Trade Agreement Position Paper,” 2006, 28–29.
59 Dawson, testimony before the USITC, June 20, 2007, 109.
60 Reis, testimony before the USITC, June 20, 2007, 27; and “Korea,” 2007 National Trade Estimate
Report on Foreign Trade Barriers, April 2, 2007, 358–361.
61 A 2003 amendment to automobile emissions requirements under the Air Quality Preservation Act
imposes highest emissions standards in the world on motor vehicles manufactured or imported into Korea
after January 2006. EIU, “Country Commerce: South Korea,” July 2006, 25.
62 Biegun, testimony before the USITC, June 20, 2007, 205 and 240.
63 Meyer, testimony before the USITC, June 20, 2007; Schott, Bradford, and Moll, “Negotiating the
Korea-United States Free Trade Agreement,” June 2006, 2; Cooper and Manyin, “The Proposed South
Korea-U.S. Free Trade Agreement,” May 24, 2007, 27; and USTR, “Trade Facts: Fact Sheet on
Auto-Related Provisions in the U.S.-Korea Free Trade Agreement,” April 3, 2007, 1.
64 Biegun, testimony before the House Committee on Ways and Means, March 20, 2007, 1–5; Collins,
testimony before the House Committee on Ways and Means, March 20, 2007, 1–6; Ford Motor Co.,
“Statement: Ford Comments on the US & Korean Free Trade Agreement Negotiations (April 2, 2007),” 1;
and DaimlerChrysler, “Chrysler Group Statement Regarding U.S.-Korea Free Trade Agreement
(April 2, 2005),” 1.
65 USFCS, “Korea Trade Regulations and Standards,” 2005, 76–81.
66 Dawson, testimony before the USITC, June 20, 2007, 70.
67 USTR, “Final - United States - Korea FTA Texts,” 2007, Articles 9.4–9.6.
68 Ibid., Article 9.8.
69 The transparency provisions of the U.S.-Korea FTA TBT chapter are consistent with overall U.S. trade
negotiating objectives of increased transparency, public access, and timely publication.
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