Manufacturing Inroads into Korea's Market

Korea's average tariff rate on non-agricultural U.S. goods is 7 percent. The U.S.-Korea FTA will remove these tariffs and open Korea - a country that imported more than $300 billion in goods globally last year - almost completely to U.S. manufactures.

U.S. manufactured goods that will enter 100% duty free under the U.S.-Korea FTA

Immediately: In 5 Years, All:
Agricultural Equipment Auto Parts
Construction Equipment Building Products
Furniture Consumer Goods
Toys Metals & Ores
Footwear & Leather Products
Paper & Paper Products


In 3 Years, All: In 10 Years, All:
Aircraft Equipment Chemicals
Scientific Equipment Electrical & Electronic
Shipping and Transportation Equipment
Environmental Goods
Infrastructure & Machinery
Medical Equipment

Korea imported $32 billion in U.S. goods in 2006. However, U.S. manufacturers' share and presence in the Korean market has declined 7 percent since 2001 as competition from other countries has grown. The U.S.-Korea FTA can change this trend. The elimination of Korean tariffs on U.S. manufactured goods will give U.S. manufacturers a sizeable advantage over competitors in the Korean market.