Wednesday, March 15, 2017

Korea-US FTA 5 years ... The maximum benefit car



[Financial newspaper stand hyomun Korea News] "Korea-US Free Trade Agreement (FTA) 'due to the FTA celebrated the fifth anniversary of 15 days received the greatest benefit from the domestic industry was in a car. Accounted for more than 20% of the total exports to the United States is rated as exports led to.

The center has recently increased the possibility of renegotiating the FTA Donald Trump in the US administration's protectionism enhanced level. In the domestic automotive industry opinion on whether or not to renegotiate tariff has risen by eotgalrigo.

◇ cars, more than 20% of the total exports to the US

According to the Industry Ministry normal car exports last year accounted for 23.3% of total exports showed the largest share. Automobile exports were $ 15.49 billion in the US last year. Automobile Industry is analyzed that the FTA tariff last year, exports increased due to improved quality, along with the increase in US consumption apply.

Industry insiders, "dwaeteotda impose tariffs of up to 2.5% in the last 2015", "The KORUS FTA period is five years note that the Convention is applied to the duty-free cars the first year," said he said.

In fact, the domestic auto industry has drawn some extent the performance of last year in the US market. Last year, as an independent brand 'Genesis' appeared on the US market recorded 5000 sales of more than 2 million a year, subject to a successful evaluation of seating. Genesis 26 324 were sold last year in exchange for the United States, 3253 to return this year were sold in February.

Yihanggu Industrial Research Fellow, the "Performance Evaluation of Genesis in the United States is getting very popular," said "It was a record year with sales more than 25 000 G80, 2 models G90 must see that propaganda," he said.

◇ FTA implementation checks the arrival time ...車 customs enforcement needs assessment staggered

Kkophi such a car, but the maximum benefit to the FTA industry is emerging concern that even Donald Trump recently due to the US administration, strengthened trade protectionism, the same effect can be reduced. This year the FTA into force five years is a situation that is highly likely to require jeomchyeo renegotiate FTA with the United States through this "check FTA implementation period, which is carried out every agreement five years.

Yihanggu Industrial Research Fellow, has "very great possibility of discussing the US to renegotiate the FTA implementation period checks carried out this year," said "can be revived through the primary duty of 2.5% to renegotiate," he said.

He added, "Of course, tariffs of 2.5% is also present opinions that can not be a large amount," said "But 10,000 about tariff application of 2.5% (about ₩ 500,000 Hanwha) about 300 US dollars Given the charyanggaaek are priced $ 5000 level price increases, enemies of the view that it is difficult, "he said.

On the other hand, if the resurrection through the renegotiation of tariffs by 2.5% due to purchase benefits provided by the manufacturer also claims that the US consumer can not feel the price level rises. As with domestic promotional discount of 10% charyanggaaek extent because the manufacturer can be discounted.

The securities industry one official as "Donald Trump, the US administration is citing the FTA renegotiation sees no possibility of tariff resurrection keojyeotji only relevant impact significantly on the domestic automobile" and "duties of 2-3% moisture will expand purchases benefit the manufacturer can maintain a competitive price, "he predicted.

He also added: "However, the need for additional monitoring import policy to start renegotiating the FTA," said, "because there are other FTA with Donald Trump, the US administration variety of ways to improve the regulation."



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