Congress Votes to Approve Korea-U.S. Free Trade Agreement

Hyundai and Hyundai dealers in the U.S. will benefit  from the recently approved United States – Korea Free Trade Agreement (KORUS FTA), which was passed by Congress yesterday.  This will bring tariff reductions and was truly a monumental day in Washington.  Now that Congress has approved this bill,  President Obama is expected to sign the bill into law as early as today, October 13.  Korean lawmakers must also approve the agreement, and if both sides pass the law, free trade with the Republic of Korea is scheduled to be implemented as early as 2012.  The agreement calls for an immediate removal of the U.S. tariff on all auto parts, removal of the U.S. 2.5% passenger vehicle tariff in five years, and removal of the U.S. 25% truck tariff in ten years.

So what does this mean for your dealership?   This will give Hyundai dealers added flexibility and the means for Hyundai to invest more in technology and services in the U.S.; not to mention allow Hyundai dealers the opportunity to give consumers a more diverse product line, more choices, and even better customer service.  The U.S. economy will also greatly benefit with purchases from suppliers, new jobs, and investment.  If signed and passed by both countries, the KORUS-FTA will be the United States’ most commercially significant free trade agreement in more than 16 years.  According to estimates from the U.S. International Trade Commission, reducing Korean tariffs and tariff quotas on products/goods alone would add up to $12 billion to U.S. Gross Domestic Product and around $10 billion to merchandise exports to Korea annually.