Finalized New Trade Agreement With South Korea

Finalized New Trade Agreement With South Korea

Another amendment to korus is aimed at bureaucracy in customs procedures. Korean Customs traditionally requires more detailed documentation compared to U.S. Customs, a practice that acts as a non-tariff barrier to trade. == In the meantime, Korea has submitted detailed proposals to reform the investor-state dispute settlement (ISDS) mechanism and has expressed concerns about protective tariffs on washing machines and solar modules13 Although most of the amendments to KORUS 2.0 were aimed at meeting US requirements, three minor amendments were made at Korea`s request. First, the investor-state dispute settlement mechanism has been slightly revised and is largely similar to the rules of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. ISDS is an arbitration process that allows foreign investors to assert claims against governments before an ad hoc panel. Some Korean officials are not satisfied with the burden this system has placed on their government. As of this year, Korea has faced a number of ISDS claims, which pose a risk of damage of more than $50 billion. . .

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