THE US-based Tire Industry Association (TIA) reports recently signed Korean-United States Free Trade Agreement will reduce the tariff on the importing of Korean manufactured car and truck radial tyres from 4% (3.4% for non-radial) through a series of graduated step-downs every year to zero starting in the fifth year of the agreement.
The duty-free importing of tyres from Korea will extend for a total of 15 years when the free trade agreement will need to be renewed. For American tyre manufacturers, the Korean import duty of US-made tyres will go from the current 8% to zero beginning the first year of the agreement.
The Obama administration estimates that American companies paid nearly US$2 million a day in additional duties since the GSP expired last year. “ (PRA)
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