04/12/2010 11:28
U.S., South Korea reach free trade agreement
The United States has reached a tentative free trade agreement with South Korea.
The agreement, which must be ratified by Congress, strengthens economic ties between Washington and Seoul at a time when the longtime U.S. ally faces an increasingly hostile northern neighbor.
If ratified, the agreement would eliminate tariffs on over 95% of industrial and consumer goods within five years, BBC Russian reports.
The new agreement calls for South Korea to reduce its tariff on U.S. auto imports from 8% to 4%, and fully eliminate it in the fifth year. Meanwhile, the 2.5% U.S. tariff on auto imports will remain in place until the fifth year, instead of being immediately eliminated as specified in the 2007 agreement.