The U.S. International Trade Commission (ITC) issued a report concerning proposed modifications to the United States-Korea free trade agreement regarding the customs duty rates for certain motor vehicles imported from South Korea.
As noted in the ITC release, the report examines the probable economic effect on U.S. trade and domestic vehicle manufacturers of proposed modifications to the staging of customs duties for light trucks and medium / heavy trucks under the United States-Korea free trade agreement. Under the proposed modifications, the elimination of duties would be deferred until 1 January 2041.
The ITC noted that because the United States currently imports few or no vehicles covered by the proposed modifications from Korea, the ITC made assumptions concerning Korean market shares and Korean export shares if Korea were to enter the U.S. truck market. The ITC report presents five alternative scenarios in the report and designates one as “most likely.” The ITC believes that:
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