South Korea’s parliament last week passed the newly revamped U.S.-South Korea free trade agreement, known as KORUS. The country represents the fifth-largest U.S. dairy export market.

“The updated pact makes no changes to agriculture provisions and maintains U.S. dairy’s market access in South Korea,” said Beth Hughes, IDFA senior director of international affairs. “American dairy companies exported approximately $280 million in dairy products to South Korea last year, up 21 percent from 2016.”

South Korean consumer preferences are trending toward U.S. beef and dairy, which has greatly impacted U.S. dairy exports since the original deal took effect in 2012.

New Pact Provisions

The trade pact includes new auto market access opportunities, updated investment rules, and heightened currency transparency. The new pact also exempts South Korea from the United States’ 25 percent tariff on steel.

The pact was signed by President Donald Trump and South Korean President Moon Jae-In this past September at the United Nations General Assembly in New York. South Korea’s parliament completed all necessary procedures so that the new provisions of KORUS could take effect. KORUS does not require approval from Congress.

The countries plan to implement the new provisions of the agreement on Jan. 1, 2019.

For more information, contact Hughes at bhughes@idfa.org.