The United States and South Korea have reached agreement on a landmark trade deal that is expected to increase annual exports of American goods by up to US$11 billion and support at least 70,000 American jobs, reports Tax-News.com.
The proposed United States-South Korea free trade agreement (KORUS FTA) would eliminate tariffs on over 95% of industrial and consumer goods within five years. US exports of aerospace, automotive, consumer goods, electrical/electronic goods, metals, scientific equipment, and shipping and transportation equipment will gain duty-free access to the South Korean market.
The agreement deals with existing barriers and establishes new rules on how South Korea will develop its regulations applied to US exports in the future, whilst also containing protection on intellectual property rights.
The agreement’s provisions on cross-border services, telecommunications, and electronic commerce would offer particular advantages to the information and communications technology service sector, while the financial services chapter in the KORUS FTA agreement would provide significantly improved market access into South Korea for US financial services firms, says Tax-News.com.
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