Obama hails U.S.-Korea free-trade agreement

Article by Christian A., on December 8, 2010

President Barack Obama has been busy touting a free-trade deal between the U.S. and South Korea that gives new provisions for automobile imports. Instead of immediately or after three years as was previously agreed, the U.S. will end its 2.5% tariff on Korean cars in five years.

According further to a White House fact sheet, in return, South Korea will decrease its 8% tariff on U.S. cars to 4% instantly, instead of dropping the tariff altogether. American automakers will also be pleased to know that U.S. tariffs on Korean trucks will stay at 25% for eight years rather than dropping off immediately.

In addition, Ford Motor Co., General Motors Co. and Chrysler Group will be able to send to South Korea 25,000 cars each year that comply with U.S. safety standards.

These vehicles will be exempted from in-country standards. Obama said that the deal is a “win-win” for both countries. Obama said that the agreement will support a level playing field, boosting U.S. exports by up to $11 billion and backing at least 70,000 U.S. jobs.

The two countries inked a trade pact in 2007; however, the deal was never ratified due to concerns over the U.S. auto and beef industries.

Bloomberg reports that restarting the stalled agreement will create the largest U.S. deal since the North American Free Trade Agreement with Canada and Mexico in 1994. The two countries have over $68 billion between each other.

If you liked the article, share on:

Comments

Recommended

There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries