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

government to take appropriate measures—such as the training of personnel, public
education campaigns, and increased enforcement—to control infringement of books on or
near school campuses. The third letter would confirm the commitment of the parties to shut
down Internet sites that permit the unauthorized downloading and distribution of copyrighted
works. Korea would further agree, within 6 months of entry in force of the Agreement, to
issue a policy directive establishing clear jurisdiction for effective enforcement against
online piracy. In the fourth side letter the parties would agree not to invoke the disputesettlement
provisions of the FTA during the first 18 months after the FTA enters into force
if a problem arises in the implementation of the patent linkage provision.
Although the first side letter is similar to side letters contained in other FTAs, the other side
letters are unique to the U.S.-Korea FTA. The side letter on copyright infringement near
university campuses and the letter on online infringement would address particular IPR
protection and enforcement challenges noted in the USTR’s Special 301 review of Korea.
The fourth side letter was added to the FTA as a result of the Bipartisan Trade Deal.
FTA Chapter 19—Labor
As with the labor chapters of several previous FTAs, chapter 19 of the U.S.-Korea FTA
would commit each party to effectively enforce its respective labor laws while providing for
the reasonable exercise of discretion regarding such enforcement. In addition, the parties
would reaffirm their obligations as members of the International Labour Organization (ILO).
Much like the labor chapter of the U.S.-Panama TPA, however, chapter 19 of the U.S.-Korea
FTA would also commit the parties to maintain the rights specified in the ILO Declaration
in their regulations and statutes. Further, whereas the labor provisions in many previous
FTAs were subject to a separate dispute settlement mechanism, the provisions in chapter 19
of the FTA would be subject to the same dispute settlement procedures as the agreement’s
other obligations.
Each party would agree to provide access to domestic tribunal proceedings, allowing persons
with a recognized interest under its law in a particular matter to seek enforcement of its labor
laws. Such proceedings must be fair, equitable, and transparent; adhere to due process of the
law; and provide an opportunity for persons involved in such proceedings to support or
defend their positions. Each party also would agree to ensure independent review of tribunal
actions, provide legal remedies to ensure enforcement, and promote public awareness of its
labor laws. The FTA defines labor laws as statutes or regulations at the central level of
government that directly relate to internationally recognized labor rights, including the right
of association, the right to organize and bargain collectively, a ban on forced or compulsory
labor, the protection of children and other young laborers, and standards on conditions of
work, including minimum wages, hours of work, and occupational health and safety.
As with previous U.S. FTAs, the U.S.-Korea FTA would establish a Labor Affairs Council
that would oversee the implementation of chapter 19 provisions. Each party would be
required to designate an office within its labor ministry to serve as a contact with the other
party and the public and to be responsible for, inter alia, the review of communications from
persons of a party. A side letter clarifies that the parties would not be required to establish
discrete procedures for the review of such communications if there are existing procedures
for other communications relating to chapter 19, and that parties could consider whether a
particular communication has merit, substantively resembles another communication, or is
being addressed in another domestic or international forum. The FTA would allow each
D-28