Home / Knowledge / News / Textiles / KORUS FTA to benefit Korean textile industry – Experts
KORUS FTA to benefit Korean textile industry – Experts
Feb '12
The Korea-United States Free Trade Agreement (KORUS FTA) that is scheduled to become effective from March 15, 2012, will benefit South Korean textile industry, according to experts.

It is because, as per the FTA, South Korean textile exports to the US will enter duty-free, while South Korea will continue to levy a 10 percent value added tax (VAT) on its imports of textiles from the US.

Secondly, according to experts, the 35 percent threshold clause will also help South Korea to increase its textile item exports to the US.

Under the clause, any product made in Korea using only 35 percent of raw materials from South Korea can be labeled as a South Korean product, and it can gain zero-duty access to the US market.

Experts say this clause will enable South Korea to procure some of its raw materials from neighbouring countries, without depending on the US for availing the benefit of FTA.

KORUS FTA is considered to be the most significant trade agreement for the US after the North American Free Trade Agreement (NAFTA) of 1994.

It will open up South Korea's US$ 1 trillion economy for American workers, as the agreement envisages enforcement of fair labour laws that would allow US workers to compete in South Korea.

In addition, around 80 percent of US industrial goods and nearly two-thirds of US agricultural exports to South Korea would not attract any duty, which is estimated to add US$ 10-12 billion annually to the US GDP.

Fibre2fashion News Desk - India

Must ReadView All

L-R Manish Singhai, COO, Peter England; Vinai Kumar Saxena, chairman, KVIC; Ashish Dikshit, business head, ABFRL and Anshu Sinha, CEO, KVIC while signing agreement. Courtesy: ABFRL

Textiles | On 24th May 2017

Aditya Birla & KVIC enter into a strategic partnership

Aditya Birla Fashion and Retail Ltd (ABFRL) and Khadi and Village...

Courtesy: Jabong

Apparel/Garments | On 24th May 2017

Jabong Mood Store redefines online shopping in India

Jabong, India's leading online fashion retailer, has launched the...

Textiles | On 24th May 2017

Starlinger unveils FX 8.0 circular loom for fabric making

Starlinger, a leading supplier of machinery for woven plastic...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search