FTA Ratification: Much In Store For US Wines And Spirits Exporters

US wine and spirits exporters have much to look forward to in anticipation of South Korea's ratification of its free trade agreement (FTA) with the US. The US Congress has recently approved the US-South Korea FTA, which will eliminate tariffs and import barriers between the two countries. The FTA will remove a 15% tariff on US wines imported into South Korea and eliminate tariffs levied on US-imported spirits in South Korea, and this should lift the export competitiveness of US wines and spirits producers in South Korea. While there is a host of benefits in store for US wines and spirits exporters, we note that there are potential challenges such as cumbersome official procedures and non-tariff barriers that could hamper their growth prospects in South Korea.

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