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Korea-US FTA takes effect; apparel imports to be cheaper

15
Mar '12
South Korean apparel imports from the US would become cheaper as the long-awaited Korea-US Free Trade Agreement (KORUS FTA) came into effect on March 15, 2012.

With the implementation of KORUS FTA, tariffs were immediately removed on 82.1 percent of US exports to South Korea, which includes apparel items such as jeans and shirts.

The existing 13 percent tariff on US apparels has been done away with as the FTA took effect. This would benefit an increasing number of Koreans who are opting to purchase American shirts and dresses through online shopping sites.

Previously, online shoppers were subjected to tariffs on items that had a price tag of over 150,000 won. But, with the FTA coming into effect, the tariff benefits will apply to both offline and Internet consumers.

The FTA was originally signed in July 2007, but it received approval from the US Congress only last October. With the coming into force of the FTA, South Korea has become the first Asian country to enjoy preferential tariffs under FTAs with both the European Union and the world's largest importer.

Experts say the pact will also boost competitiveness of Korean items in the world's largest economy as tariffs on 80.5 percent of Korean items destined to the US have also been removed.

According to them, the FTA has come into effect at an opportune time for South Korea, and would boost its exports, which are slackening due to the eurozone reeling under debt crisis.

Fibre2fashion News Desk - India


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