Report: U.S., South Korea closer to new trade deal

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.]