• Dec 5, 2010
The United States and South Korea have reached an agreement regarding revisions to the free-trade deal between the two nations. This move allows the U.S. and the South Korea to move forward and look at approving the legislation, which has been delayed due to issues on both sides.

A rundown of what has been changed is as follows:
  • The U.S. can phase out its 2.5 percent tariff on automobiles over five years, instead of three.
  • Each U.S. Automaker can export up to 25,000 cars to South Korea annually provided they meet US crash standards.
  • The U.S. can continue charging a 25 percent tariff on trucks for eight years and then phase it out by the 10th year.
  • South Korea will eliminate its tariff on trucks.
Both sides report that significant progress has been made, and the revised agreement continues to be reviewed. With $68 billion in trade floating between the United States and the Republic of Korea, getting this trade agreement signed should serve to boost our national export business.

[Source: Automotive News – sub.req.]


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  • 56 Comments
      • 4 Years Ago
      I used to live in Asia and I did want an American Jeep GC but the problem is very hard to import and American do not have factory in Asia so they tax cars that CBU (completely built up)
      Plus one other thing in Asia American cars will not survive the high gas price (that is why most cars in Asia and Europe have small engine unlike in US 1.5 is considered a motorbike engine not a car engine. Also if the car is not reliable it wont sell there. Most other cars there are very dependable so if your selling cars that often have problem it will be a turn off for people who do want to try American car.
      • 4 Years Ago
      May I ask who this comment is directed towards to?
      • 4 Years Ago
      A better deal for the US than we get now, but SK gets a great deal. They are the clear winner in that agreement.
        • 4 Years Ago
        No - the US gets the better deal (compared to the proposed 2007 agreement, the US benefits in pretty much every way).

      • 4 Years Ago
      http://www.census.gov/foreign-trade/balance/c5800.html#2010

      Trade imbalance is more like $10 billion. So why not try to open the market up by eliminating tariffs on US goods?
      • 4 Years Ago
      Interesting timing. So. Korea had just told Obama to his face(G20 meetings) to shove it. Now, after a little No. Korea torture, and they seem to coalesce to our demands? I wonder what we gave/promised them for this to happen? Maybe some nukes...........??....O.K O.k. maybe some Fords.....a couple of Chevys......3 Mopars.
      • 4 Years Ago
      WTF is wrong with these freaks. First they hate on our Canadians ally now S. Korea. Freaking xeno freaks. It's a good deal for USA end of story. Quit whining.
      • 4 Years Ago
      My $10 billion figure was just a round number estimate for the year, I linked to the site so you could find the exact numbers if you wanted. No need to get snippy.
      • 4 Years Ago
      Toyota Tundra trucks are not taxed in the US, because they are built in the US and so they are not imports since their market values go into the US GDP. Only Prius cars are taxed.
      • 4 Years Ago
      The changes in the tariffs and agreements are relatively minor. This is mostly about publicly expressing solidarity with the South Koreans, given that their neighbors are causing trouble again. S. Korea is one of our few stalwart allies who doesn't give us crap on a regular basis, and I don't see any reason not to support this trade agreement.
      • 4 Years Ago
      Interesting, when Obama was over there a couple of weeks ago they wouldn't sign. Then N. Korea lobs a bunch of artillery shells over the border and a week later we have an agreement. You can't tell me that the continuing presence of the United States 8th Army in South Korea wasn't mentioned in the most recent negotiations. I still think the treaty stinks until is it totally equitable. Believe me, if we closed our borders to Korean goods, their economy would suffer far more than our own. Walmart can always buy their cheap electronics from China and Taiwan.
        • 4 Years Ago
        Amen, brother!
        • 4 Years Ago
        It's a bit silly to expect trade to be perfectly equal between small producer nations and larger ones like the U.S. Even if the tariffs were identical the sheer difference in population makes it rather difficult for them to ever consume as much stuff. You don't have to have perfect 1:1 trade to gain a benefit though, everyone seems to ignore the actual value of the goods that you've brought into your country. Yes the money flows to the exporter but they're also sending you goods and resources. It's not like steel is free or unlimited.
        I mean back in the colonial days all the major powers would build new colonies for the express purpose of being able to ship back resources. So technically all the powers would have a "trade deficit" with their own colonies but they were definitely on the winning end of the bargain since they got access to goods and resources on the cheap. Freaking out because you've equated a trade deficit with doom and gloom is friggin' idiotic.
        • 4 Years Ago
        @cadetgray

        An ignorant person like you do a lot of damage to the great alliance between ROK-US. Your comment makes the US forces stationed in S. Korea cheap mercenaries. Your fathers certainly didn't fight financial gains, and US government certainly didn't use the alliance as bargaining chips ever.
        • 4 Years Ago
        @Black& Blue
        If you want everything to be absolutely equal in trade, then why don't you go live in a Communist world. & why do you think there is a deficit? Ever thought that the cause for the deficit was due to Americans making poor products that people in Korean, Japan & other parts of the world don't want to buy. always look in the mirror before pointing finger at others.
        • 4 Years Ago
        Wow, another biased American talking irresponsibly without knowing all the facts & making villains out of Foreigners. The Japanese & Koreans may sell more cars in the U.S. than the Americans do in Korea & Japan(bcus they have enough respect for the Americans to design their cars specifically for the Americans from the start of development) , but there are so many OTHER AREAS of trade where the Americans are profitting even more. For example, go anywhere in Korea/Japan & you will find Nike, CocaCola, Pizzahut, Starbucks, McDonald's, Apple, Dell, Levi's, etc. & also American movies taking away all the money in the Cinemas. Since the Americans here are whining like major victims that something is VERY UNFAIR, why don't we really make everything totally equal in all areas of trade & have equal number of Korean/Japanese Clothing brands, restaurants, coffee shops doing business in the United States. Ignorance makes stupid haters courageous.
      • 4 Years Ago
      Toyota Tundra trucks are not taxed in the US because they are not imports since they are built in the US.
      CheckTheseOut
      • 4 Years Ago
      Wonder how our fearless leader will spin this "deal" as a positive???
        • 4 Years Ago
        @CheckTheseOut
        How does it suck?

        GM wasn't against the proposed 2007 deal b/c they had GMDaewoo; Ford, otoh, was a big proponent.

        Ford approves of this current deal b/c:

        1. It keeps the US 25% tariff on trucks for 8 years (to be phased out by year 10) while SKorea immediately drops its 10% tariff on trucks - big win for the US.

        2. Each US automaker can export to Korea 25K autos which do NOT have to meet Korean safety standards/certification (the Japanese makes currently do); for US built auto which are modified to meet certification, there is, as it has been, no limit - win for the US.

        3. US phases out its 2.5% tariff on car imports by year 5; SKorea immediately drops its 8% tariff to 4%, which will then be also be phased out by year 5 - slight win for Korea.

        • 4 Years Ago
        @CheckTheseOut
        It's a gain over what we have now. This pact was originally negotiated in 2007 under GWB, both countries changed governments and it was never ratified. The Obama crew picked up the Bush agreement and IMPROVED on it.
        • 4 Years Ago
        @CheckTheseOut
        No need for name calling, I merely stated the FACTS. If it's so bad for us, why are the Korean people calling for the head of the SK trade minister?

        Its beyond me why the US ever signs a trade agreement with anyone, the US always seems to get screwed.
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