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

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 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