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

U.S. service imports from Korea were $6.3 billion. Total bilateral services trade increased 39 percent
from 2000 to 2005. 1
U.S. Merchandise Exports
U.S. merchandise exports to Korea were valued at $30.8 billion in 2006, and Korea
accounted for 3.3 percent of total U.S. exports of $929.5 billion in 2006. U.S. exports to
Korea have increased at a compound annual rate of approximately 2 percent since 1996, and
at a compound annual rate of approximately 8 percent since 2001 (figure 1.1). Appendix
table E.1 shows the leading U.S. exports to Korea in 2006. Digital integrated circuits ranked
as the single largest U.S. export to Korea in 2006, with exports valued at $3.2 billion. Other
leading exports to Korea were large civil aircraft, certain miscellaneous appliances and
machinery, aircraft parts, and corn (other than seed corn). Table 1.2 summarizes Korea’s
most favored nation (MFN) ad valorem tariff rates faced by imports from the United States.
This table shows that only 13 percent of tariff lines have free rates of duty, and the majority
of tariff lines have rates ranging from 5 to 10 percent ad valorem. Approximately 14 percent
have rates greater than 10 percent, with a small number (approximately 1 percent) having
rates in excess of 100 percent.
Figure 1.1 U.S. merchandise trade with Korea, 1996–2006
Source: Compiled from official statistics of the U.S. Department of Commerce.
1 USDOC, BEA, Survey of Current Business, October 2006, Table 2: Summary data for private service trade by area and
country.
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