Today I read the article about Korean-USA FTA.
Original article link: http://news.imaeil.com/Economy/2018092817065190389
At 24th Korea-USA FTA agreement revision has been signed.
Korean local auto parts industries say that the worst situation is behind them but still concerned about the possibility of Customs bomb to Korean imported goods.
By this FTA agreement revision, the term of imposing customs levy on Korean made pick-up truck(25%) is maintained until 2041.
And import volume of USA made pick-up truck will be increased from 25,000 unit to 50,000 unit for each Korean company, if satisfied USA safety regulation.
According to Korean auto parts companies, FTA will not affect to business since there is not high demand on pick-up truck in Korea. Last year only 19,712 unit of pick-up truck were imported from USA.
They more concern about USA import duties on automobiles. By Article 232 of the Trade Expansion Act, USA president can assign custom tariff on the imported good which are expected to threat USA Trade security. If Trump will assign 25% on the import automobiles, the car manufacturer (such as Hyundai) may establish the assembling factory in USA to avoid customs bomb. In this case, the parts suppliers and subcontractors will be damaged, since they will lost the main buyer.
I think the most of trading companies for auto parts will be damaged too, in this case. Hope the thing will goes good way….