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

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establishment of Uniform Domain-Name Dispute-Resolution procedures for the settlement of disputes. 92 Copyrights and Related Rights and Protection of Certain Satellite Signals The copyright and related rights sections contain detailed provisions that would require implementation of the obligations of the WIPO Internet Treaties, including the treatment of temporary copies (including those made in a computer’s random access memory) as regular copies, establishment of the copyright owner’s right to control any technological manner of transmitting works, and the protection of technological protection measures that owners use to control access to their works. Korea would also agree to extend its term of copyright protection to life of the author plus 70 years for most works, subject to a 2-year transition period. The section also contains a requirement that the two governments issue decrees mandating the use of noninfringing software in government agencies. 93 The FTA would require Korea to bring all means of digital dissemination of sound recordings within the scope of the exclusive rights of recording producers and would obligate Korea to allow right holders to exercise economic rights in their own names. 94 The FTA also includes provisions similar to those in NAFTA that protect against the theft of encrypted satellite and cable signals and the manufacture of, and trafficking in, tools to steal those signals. 95 Patents and Measures Related to Certain Regulated Products The patents section would provide that patents shall be available for any invention if it is new, involves an inventive step, and is capable of industrial application, including new uses of known products. Exclusions from patentability would be recognized where necessary to protect public order or morality and for diagnostic, therapeutic, and surgical procedures and inventions. The patents section identifies permissible grounds for revocation of a patent and precludes opposition proceedings that occur before the patent is granted. 96 The patents section also includes limitations on how a third party may use a patented invention to generate data needed for the marketing approval of a generic pharmaceutical. It would provide for extension of the patent term beyond 20 years to compensate for “unreasonable delays,” defined as the later of 4 years from the filing of an application or 3 years after a request for examination, or delays in the marketing approval of a new pharmaceutical product. The patents section also includes procedural definitions that facilitate patent examination and establish a framework for cooperation between patent offices in the United States and Korea. 97 92 Ibid., Article 18.3.1. 93 Ibid., Articles 18.4.1, 18.4.7, 18.4.4, and 18.4.9. 94 Ibid., Articles 18.6.3 and 18.4.6. 95 Ibid., Article 18.7. 96 Ibid., Articles 18.8.1, 18.8.2, and 18.8.4 97 Ibid., Articles 18.8.5, 18.8.6, and 18.8.8-18.8.11. D-26
The section on measures related to regulated products contains provisions that govern the regulatory approval and marketing of pharmaceutical or agricultural chemical products. The data exclusivity provisions would preclude reliance by another person, without consent of the submitter, on safety or efficacy information provided in support of a new pharmaceutical product, or evidence of the marketing approval of that product, for a period of at least 5 years from the date of marketing approval. The data exclusivity period for an agricultural chemical product would be at least 10 years from marketing approval. In cases where new clinical information, or evidence of marketing approval based on new information, is submitted in support of a pharmaceutical product containing a previously approved chemical entity, the data exclusivity period would be at least 3 years. 98 The section contains a new provision, which clarifies that a party may take measures to protect public health in accordance with the Declaration on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement and Public Health (the Doha Declaration), notwithstanding these data exclusivity provisions. Later in the IPR chapter, the parties affirm their commitment to the Doha Declaration and confirm that the obligations of the IPR chapter would not prevent a party from taking measures to protect public health by promoting access to medicine for all. 99 The section on measures related to regulated products also would require the implementation of measures in the marketing approval process to prevent the approval of generic drugs during the term of the patent without the patent owner’s consent (a “patent linkage” provision), including a requirement that the patent owner be notified of the identity of a person seeking marketing approval during the patent term. 100 Enforcement The enforcement section of the FTA contains detailed measures intended to promote full and effective IPR enforcement. It contains general obligations, civil and administrative procedure and remedies provisions, provisional measures, special requirements related to border measures, criminal procedures and remedies, and provisions on liability of Internet service providers. In particular, Korea agrees to supplement its civil remedies with a regime of statutory damages, costs, and attorney’s fees and to provide criminal remedies for trafficking in counterfeit labels and the illegal recording of audiovisual works (so-called “camcording”). 101 Side Letters The IPR chapter includes a series of side letters addressing Internet service provider obligations, copyright infringement on university campuses, enforcement against online piracy, and patent linkage. More specifically, the first side letter contains detailed provisions for an effective “notice and takedown” process for Internet service providers when online materials are claimed to be infringing and when it is asserted that online materials should not have been removed from the Internet. The second side letter would require the Korean 98 Ibid., Article 18.9.1-2. 99 Ibid., Articles 18.9.3 and 18.11. These new provisions are the result of a “Bipartisan Trade Deal” between the Office of the U.S. Trade Representative and certain Members of Congress. USTR, “Bipartisan Trade Deal,” May 2007, 3. 100 Ibid., Article 18.9.5. 101 Ibid., Articles 18.10.6, 18.10.28, and 18.10.29. D-27
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U.S. International Trade Commission
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This report was prepared principall
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CONTENTS-Continued Chapter 3. Secto
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CONTENTS—Continued Chapter 5. Imp
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CONTENTS-Continued Chapter 7. Liter
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CONTENTS-Continued Tables—Continu
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Abbreviations and Acronyms 3G third
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Abbreviations and Acronyms—Contin
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Abbreviations and Acronyms—Contin
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vehicles) would likely be diverted
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Sector-specific Assessments The U.S
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total increased fish imports from K
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Korea would likely limit the impact
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Intellectual property rights (IPR):
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sector barriers. 5 These merchandis
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Table 1.1 U.S.-Korea FTA: Location
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Table 1.2 Korean tariff rates on im
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Table 1.4 U.S.-Korea FTA: Summary o
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observed GDP for model regions). Th
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Box 2.1 Interpreting the model resu
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Table 2.1 U.S.-Korea FTA: Simulated
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2-8 This page has been updated to r
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Figure 2.2 U.S-Korea FTA: Simulated
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As shown in figure 2.2, the largest
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2-14 This page has been updated to
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Economy-wide Impact of Implementing
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Grain (Wheat, Corn, and Other Feed
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Korea imported 3.8 million mt of wh
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U.S. oilseed product exports to Kor
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Table 3.2 U.S. oilseed product expo
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Table 3.3 Animal feed exports to Ko
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consumed domestically by the U.S. l
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ates. For corn starch, the United S
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quota rates have been effectively e
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Noncitrus Fruit 87 Views of Interes
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3-20 Table 3.9 U.S.-Korea trade and
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Korean grapes are much more costly
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Potato Products 122 Assessment The
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ate is 304 percent ad valorem. 141
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Other Vegetables 162 Assessment The
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U.S. exports of other fresh and pro
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tariff concessions that could accru
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Dairy Products 215 Similarly, the p
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TRQ for food whey, 223 based on cur
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potential changes in trade based so
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Figure Figure 3.1 Korea: Beef and v
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Views of Interested Parties The inc
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are subject to the same food safety
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enefit under the provisions of this
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Box 3.2 Potential price and quantit
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50 percent, while the vegetable jui
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and major supplier, and U.S. tariff
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textiles and apparel through 2005.
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U.S. Exports The impact of the FTA
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passage. NCTO indicated that, even
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In its report, the ITAC on Distribu
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of the U.S. footwear market, with C
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of these producers. 362 RPFMA noted
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prohibit improper inducements by ph
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Machinery, Electronics, and Transpo
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U.S. exports of auto parts would be
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imports from and exports to Korea.
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Passenger Vehicles 433 Assessment U
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Table 3.16 Korean passenger vehicle
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import activities have continued
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Box 3.4 Automotive-related FTA Prov
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access. The FTA affirms the parties
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gaining U.S. market share regardles
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keep the products out.” 492 Mr. B
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these vehicles to Korea. The commit
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Brown expressed concern about the r
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goods; and high-technology medical,
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device pricing, reimbursement, and
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CHAPTER 4 Impact of Market Access P
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elative to GDP than do China, Japan
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services as a substantial improveme
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Box 4.2 Financial services: Competi
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Summary of Provisions Chapter 13 of
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national treatment, full establishm
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Box 4.4 Competitive conditions in t
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and cross-connect links 70 are more
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Box 4.5 U.S. legal services trade w
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establish offices in Korea to provi
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Box 4.6 Competitive conditions in t
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equirements and foreign ownership r
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CHAPTER 5 Impact of Trade Facilitat
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publication and administration of t
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Views of Interested Parties In its
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Summary of Provisions This chapter
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use of TBTs to protect Korea’s au
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conformity assessment procedures el
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FTA Chapter 15-Electronic Commerce
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Views of Interested Parties The U.S
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quantities as to be a substantial c
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that such transshipment could imped
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Box 6.1 Foreign investment in Korea
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in the FTA. The awards made by any
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Table 6.1 U.S.-Korea FTA: Industry
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(ITAC 5) report cited as particular
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Section C of Chapter 11 and the lac
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practices, and violations of consum
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FTA Chapter 17—Government Procure
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Both the United States and Korea ar
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8) 87 also expressed support for th
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Box 6.2 Recent conditions of IPR pr
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protection to life of the author pl
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Views of Interested Parties A numbe
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GPHA stated in testimony before the
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Box 6.3 Labor market conditions in
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FTA Chapter 20—Environment 131 As
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trade measures are the least disrup
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FTA Chapter 22-Institutional Provis
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Views of Interested Parties The Ind
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CHAPTER 7 Literature Review and Sum
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7-3 Table 7.1 Model, liberalization
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terms. Much of the increase in U.S.
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Liberalization generated small incr
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Sander Levin, Member of the U.S. Ho
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Regarding footwear and travel goods
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Korea’s establishment as a region
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The California Table Grape Commissi
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order activity, and facilitate expa
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At the Commission’s hearing, Mr.
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Information Technology Industry Cou
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With respect to tariff and nontarif
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deterring illegal transshipments. I
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PhRMA identified what it views as t
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the TIA stated that it supports the
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access to the market. The Council a
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United States, Spain, Chile, Brazil
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Bibliography Advanced Medical Techn
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AT&T. “AT&T Reaction to Free Trad
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______. “Korea-U.S. Free Trade Re
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______. “Country Finance: South K
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Global Trade Information Services I
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International Labor Organization (I
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Jones, Laura E. Executive Director.
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Lee, Hyunok, and Daniel A. Sumner.
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Nam, In-Soo. “Helio's Losses To W
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Powers, Mark. Northwest Horticultur
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Page 289 and 290: U.S.-Korea Business Council (USKBC)
Page 291 and 292: ______. “Korea, Republic of Oilse
Page 293 and 294: U.S. International Trade Commission
Page 295 and 296: Ward, David. American Council on Ed
Page 297: APPENDIX A Request Letter from USTR
Page 301: APPENDIX B Federal Register Notices
Page 304 and 305: pwalker on PROD1PC71 with NOTICES 2
Page 307: APPENDIX C Hearing Participants
Page 310 and 311: ORGANIZATION AND WITNESS: PANEL 1 (
Page 313: APPENDIX D U.S.-Korea FTA: Chapter-
Page 316 and 317: fees and charges on trade in goods
Page 318 and 319: determines the tariff classificatio
Page 320 and 321: The transparency provisions would a
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Page 326 and 327: procedures), and practices of a par
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Page 336 and 337: parties’ rights and obligations u
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Page 347 and 348: Economic indicators 2002 2006 Popul
Page 349 and 350: Table E.1 Leading U.S. exports to K
Page 351: APPENDIX F GTAP Model
Page 354 and 355: Updating the GTAP Database The curr
Page 356 and 357: Key Assumptions Agency. 4 The price
Page 358 and 359: Table F.2 U.S.-Korea FTA benchmark
Page 360 and 361: Measuring the Impacts of the FTA an
Page 363 and 364: General Effects of Trade Agreements
Page 365: APPENDIX H Tariff Equivalents in Ko
Page 368 and 369: Previous Literature The method for
Page 370 and 371: For the purposes of this report, a
Page 372 and 373: Table H.1 Tariff equivalents in Kor
Page 375: APPENDIX I Services Nonconforming M
Page 378 and 379: Table I.1 U.S.-Korea FTA: Korean se
Page 381: APPENDIX J Description of Possible
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Page 387: APPENDIX K Overview of Agricultural
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Additionally, although current regu
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About This Report The United States
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