ITC Says SMEs Already Benefit From Korea FTA, But Are Concerned About Nontariff Barriers
U.S. small and medium-sized businesses (SMEs) are already seeing gains from the U.S.-Korea Free Trade Agreement (UKFTA), and they think benefits will grow over time, according to a report by the International Trade Commission. To compile the report, the ITC surveyed SMEs that export to South Korea on their experiences. The report discusses the effects of the FTA on the production, distribution, and export strategy of the U.S. SMEs surveyed, and describes benefits and challenges the companies have faced.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
According to the report, several surveyed SMEs said they experienced immediate sales increases when the UKFTA went into effect in March 2012. Others said potential trade gains were delayed because of long implementation time frames, the ITC said. But “narratives of expanding business opportunities and the creation of new relationships were partly countered by concerns about remaining nontariff measures (such as phytosanitary restrictions) and new administrative burdens,” the report said.