New Opportunities for U.S. Exporters Under the U.S.-Korea Trade Agreement
The entry into force of the U.S.-Korea Free Trade Agreement on March 15, 2012 means countless new opportunities for U.S. exporters to sell more Made-in-America goods, services, and agricultural products to Korean customers – and to support more good jobs here at home. If you’re an American exporter, here are resources to answer your questions about how the U.S.-Korea trade agreement can work for you:
• Check out the FTA Tariff Tool to find out the new tariff levels for your products, and other information about your market access under the agreement.
• For further assistance, please email KORUS@ustr.eop.gov or call USTR's Office of Korean Affairs at 202-395-5070, where Bryant Trick or Su-Jin Yoo can help to answer additional questions
The United States and the Republic of Korea signed the United States-Korea Free Trade Agreement (KORUS FTA) on June 30, 2007.
U.S.-Korea Trade Facts
U.S. goods and private services trade with Korea totaled $129 billion in 2012 (latest data available). Exports totaled $60 billion; Imports totaled $68 billion. The U.S. goods and services trade deficit with Korea was $8 billion in 2012.
Korea is currently our 6th largest goods trading partner with $104 billion in total (two ways) goods trade during 2013. Goods exports totaled $42 billion; Goods imports totaled $62 billion. The U.S. goods trade deficit with Korea was $21 billion in 2013.
Trade in private services with Korea (exports and imports) totaled $27 billion in 2012 (latest data available). Services exports were $18 billion; Services imports were $9 billion. The U.S. services trade surplus with Korea was $9 billion in 2012.
Korea was the United States' 10th largest goods export market in 2013.
U.S. goods exports to Korea in 2013 were $41.6 billion, down 1.7% ($729 million) from 2012, but up 73% from 2003. It was down 4.2% from 2011 (pre-FTA). U.S. exports to Korea account for 2.6% of overall U.S. exports in 2013.
The top export categories (2-digit HS) in 2013 were: Machinery ($6.8 billion), Electrical Machinery ($6.1 billion), Aircraft ($3.3 billion), Optic and Medical Instruments ($2.8 billion), and Organic Chemicals ($1.9 billion).
U.S. exports of agricultural products to Korea totaled $5.1 billion in 2013, the 5th largest U.S. Ag export market. Leading categories include: beef and beef products ($609 million), hides and skins ($484 million), fresh fruit ($356 million), wheat ($341 million), and dairy products ($301 million).
U.S. exports of private commercial services* (i.e., excluding military and government) to Korea were $18.1 billion in 2012 (latest data available), 10.5% ($1.7 billion) more than 2011 (Pre-FTA) and 140% greater than 2002 levels. U.S. exports of private commercial services were up 5.4% for the first two quarters of 2013 as compared with the first two quarters of 2012. Other private services (business, professional, and technical services and education), royalties and license fees (industrial processes and computer software), and the travel categories accounted for most of U.S. services exports to Korea in 2012.
Korea was the United States' 6th largest supplier of goods imports in 2013.
U.S. goods imports from Korea totaled $62.2 billion in 2013, a 5.7% increase ($3.3 billion) from 2012, and up 67% from 2003. It was up 9.8% from 2011 (pre-FTA). U.S. imports from Korea account for 2.7% of overall U.S. imports in 2013.
The five largest import categories in 2013 were: Vehicles (cars) ($16.5 billion), Electrical Machinery ($14.7 billion), Machinery ($10.8 billion), Mineral Fuel and Oil ($3.0 billion), and Iron and Steel Products ($2.6 billion).
U.S. imports of agricultural products from Korea totaled $426 million in 2013. Leading categories include and processed fruit and vegetables ($74 million) and snack foods (including chocolate) ($39 million).
U.S. imports of private commercial services* (i.e., excluding military and government) were $9.4 billion in 2012 (latest data available), up 9.1% ($780 million) from 2011 (Pre-FTA), and up 113% from 2002 level. U.S. imports of private commercial services were down 2.5% for the first two quarters of 2013 as compared with the first two quarters of 2012. Passenger fares, travel, and other private services (business, professional, and technical services) categories accounted for most of U.S. services imports from Korea.
The U.S. goods trade deficit with Korea was $20.7 billion in 2013, a 24.4% increase ($4.1 billion) over 2012.
The United States has a services trade surplus of $8.7 billion with Korea in 2012 (latest data available), up 11.9% from 2011.
U.S. foreign direct investment (FDI) in Korea (stock) was $35.1 billion in 2012 (latest data available), a 16.5% increase from 2011.
U.S. direct investment in Korea is led by the manufacturing, and finance/insurance sectors.
Korea FDI in the United States (stock) was $24.5 billion in 2012 (latest data available), up 27.1% from 2011.
Korea’s direct investment in the U.S. is primarily in the wholesale trade sector.
Sales of services in Korea by majority U.S.-owned affiliates were $12.1 billion in 2011 (latest data available), while sales of services in the United States by majority Korean-owned firms were $12.7 billion.
*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.