July 22, 2022
News Release 22-080
Inv. No(s). U.S.-Korea FTA-103-033
Contact: Jennifer Andberg, 202-205-1819
USITC Launches New Investigation on Possible Modification to the United States-Korea Free Trade Agreement Rules of Origin

The United States International Trade Commission (USITC) is seeking input on a newly initiated investigation concerning a proposed modification to the United States-Korea Free Trade Agreement (KORUS) rules of origin.

The investigation, Certain Fabrics of Triacetate Filament Yarns: Effect of Modification to U.S.-Korea FTA Rules of Origin (Inv. No. U.S.-Korea FTA-103-033) was requested by the U.S. Trade Representative (USTR) in a letter received on July 5, 2022. The letter included an attachment detailing the textile and apparel articles affected by the proposed modification. 

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice on the probable economic effect of the proposed KORUS rules of origin modification on U.S. trade under the KORUS, total U.S. trade, and domestic producers of the affected articles.

The USITC expects to submit its advice to the USTR by November 4, 2022. A public version of the report, with all confidential business information deleted, will be released as soon as possible thereafter.

The USITC is seeking input for its new investigation from all interested parties and requests that the information focus on the articles for which the USITC is requested to provide information and advice. The USITC will not hold a public hearing in connection with the investigation; however, the USITC welcomes written submissions for the record. Written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436 and should be submitted at the earliest practical date but no later than 5:15 p.m. on August 26, 2022.

IMPORTANT:  All written submissions must be made through the Commission’s Electronic Document Information System (EDIS, https://edis.usitc.gov). No in-person paper-based filings or paper copies of any electronic filings will be accepted until further notice. Persons with questions regarding electronic filing should contact the Office of the Secretary, Docket Services Division (EDIS3Help@USITC.gov), or consult the Commission’s Handbook on Filing Procedures.

Further information on the scope of the investigation is available in the USITC’s notice of investigation, dated July 21, 2022, which can be downloaded from the USITC Internet site (www.usitc.gov) or may be obtained by contacting the Office of the Secretary at commissionhearings@usitc.gov.

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January 28, 2011
News Release 11-010
Contact: Peg O'Laughlin, 202-205-1819
USITC to Investigate Modifications to the U.S.-Korea FTA Affecting Passenger Vehicles

The U.S. International Trade Commission (USITC) is seeking input for a newly initiated investigation concerning recently negotiated modifications to the U.S.-Korea Free Trade Agreement affecting the U.S. passenger vehicle sector.

The investigation, U.S.-Korea Free Trade Agreement: Passenger Vehicle Sector Update (Investigation No. 332-523), was requested by the U.S. House of Representatives' Committee on Ways and Means.

The USITC, an independent, nonpartisan, factfinding federal agency, will provide an update to an assessment originally provided to the U.S. Trade Representative in 2007 in conjunction with the conclusion of negotiations between the United States and Korea on a bilateral free trade agreement. As requested, the Commission will update its assessment of the impact of the motor vehicle-related provisions in the KORUS FTA, including the supplemental autos agreement, on the U.S. passenger vehicle sector. The Commission will use the most recent data available and will include a modeling simulation of the effects of the auto non-tariff measures in its assessment.

The USITC expects to submit its report to the Committee by March 15, 2011.

The USITC is seeking input for its new investigation from all interested parties and requests that the information focus on the modifications to the agreement affecting the U.S. passenger vehicle sector. There will be no public hearing in connection with this investigation, but the USITC welcomes written submissions for the record. Written submissions should be addressed to the Secretary to the Commission, 500 E Street SW, Washington, DC 20436 and should be submitted at the earliest practical date but no later than 5:15 p.m. on February 14, 2011.

Further information on the scope of the investigation is available in the USITC's notice of investigation, dated January 28, 2011, which can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the office of the Secretary at the above address or at 202-205- 2000.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

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July 24, 2019
News Release 19-067
Inv. No(s). TA-103-032
Contact: Peg O'Laughlin, 202-205-1819
Proposed Modifications to the U.S.-Korea FTA Rules of Origin Would Likely Have a Negligible Effect on U.S. Imports and Exports, Says USITC

However, USITC Notifies USTR That Two Domestic Producers Filed Objections

Proposed modifications to the United States-Korea Free Trade Agreement (KORUS) rules of origin are likely to have a negligible effect on U.S. imports and U.S. exports, but they could impact the U.S. industry that produces some of the affected articles, reports the United States International Trade Commission (USITC) in its publication U.S.-Korea FTA: Advice on Modifications to Certain Textile and Apparel Rules of Origin.

The USITC, an independent, nonpartisan, factfinding federal agency, produced the report at the request of the U.S. Trade Representative (USTR).

As requested, the report provides advice on the probable economic effect of the proposed modifications to the U.S.-Korea FTA rules of origin on U.S. trade under the agreement, on total U.S. trade, and on domestic production of the affected articles. The proposed modifications, detailed in the USTR's request letter, cover the following of headings of the Harmonized Tariff Schedule of the United States (HTS):

  • Certain cotton yarns (under HTS heading 5206) with viscose rayon staple fibers (under HTS subheadings 5504.10 or 5507.00);

  • Certain woven fabrics (under HTS heading 5408) with cuprammonium rayon yarns (under HTS subheading 5403.39); and

  • Certain apparel (under HTS heading 6110), accessories, and apparel parts (under HTS heading 6117) of cashmere yarns (under HTS heading 5108).

Each of the proposed modifications to the rules of origin would liberalize the current rules of origin by allowing the use of more non-originating materials. However, because U.S. imports from Korea are a small portion of total U.S imports of the affected articles, and because Korea is not a major producer of the affected articles, the likely effect of the proposed modifications on imports under KORUS and on total U.S. imports of these products is negligible.

Similarly, because the United States exported little to none (both in terms of value and as a share of total U.S. exports of these products) of the affected articles to Korea in 2018, the likely effect of the proposed modification on exports under KORUS and on total U.S. exports would be negligible as well.

The Commission received two objections from domestic producers of two of the articles affected by the proposed modification. One domestic producer of cotton yarns with viscose rayon staple fibers objected to the first of the proposed modifications as they produce the end-use product covered by that modification. Another domestic producer of cashmere yarns objected to the third modification as they produce the input covered by that modification.

U.S.-Korea FTA: Advice on Modifications to Certain Textile and Apparel Rules of Origin (Inv. No. FTA-103-032, USITC publication 4917, June 2019) is available at https://www.usitc.gov/sites/default/files/publications/tariff_affairs/pub4917.pdf

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