The National Assembly approved the amendment of the Korea-US Free Trade Agreement (FTA), which was passed by the government on July 7 at the plenary session.

The government has reached the goal of completing the domestic procedures necessary for the amendment to take effect early next year with the ratification of the National Assembly, and it plans to cooperate with the United States as soon as possible to enter into the Korea - US FTA amendment agreement.

After the ratification of the National Assembly, each Party shall notify the other Party in writing of the completion of the domestic proceedings and shall enter into force on the 60th day after the notification or on the date on which the two parties otherwise agree.

The amendment has already been approved by the Ministry of Industry and Trade in September (www.motie.go.kr, www.fta.go.kr).

The amendment originally consisted of eight documents, including two revised protocols, an interpretation of the joint committee, a consensus meeting and a letter exchange. The two passed in the National Assembly are two amendments related directly to the amendment effect.

The Ministry of Industry explained that the contents of the revised bill had not been added or changed by the government in the approval process.

In the automotive sector, we have decided to eliminate the tariff for cargo (pick-up truck), which was originally scheduled to be removed on January 1, 2021, for another 20 years, on January 1, 2041.

At present, Korean automobiles imported from the United States are regarded as meeting the Korea Automobile Safety Standard (KMVSS) if they comply with the American Automobile Safety Standards (FMVSS) up to 25,000 vehicles per year.

Automobile replacement parts for repairs to US cars also only meet US safety standards.

In addition, we decided to consider global trends such as US standards when Korea sets gas mileage and greenhouse gas standards for next year (2021 ~ 2025).

The Korea Health Insurance Review and Assessment Agency has agreed to prepare amendments by the end of this year in the direction of conformity with the Korea-US FTA in the case of the 'Global Innovative New Drug Discount System'

This system improves clinical usefulness, conducts clinical trials in Korea, and offers preferential treatment for new medicines with high contribution to domestic healthcare, such as R & D investment, and reduces insurance coverage period.

The HIRA released its draft last year, when the United States raised the issue that the content was in violation of the KORUS FTA principles.

The KORUS FTA stipulates that all measures that are generally applicable to all matters relating to the pricing, salvation or regulation of pharmaceuticals or medical devices are guaranteed to operate in a rational, objective and fair manner, which is not the case.

The two countries have incorporated in the amendment the elements that limit the investor - state dispute settlement system (ISDS) and protect the legitimate policy authority of the government.

Especially when the ISDS was launched through other investment agreements, it was impossible to start the ISDS process again through the Korea-US FTA.

For example, a multinational corporation that has a corporation in several countries can not conduct an ISDS through the Korea-US FTA if it sues the ISDS based on the FTA that Korea has concluded with other countries such as Europe.

The revised pact allowed the United States to disclose the method of calculating anti - dumping and countervailing duty rates and to specify local due diligence procedures when conducting US trade surveillance (import restrictions) investigations.

The ministry explained that it would be beneficial to establish minimum transparency in trade surveillance surveys and to establish the basis for raising issues at the government level if the procedures are specified in the agreement.

The government, in principle, reached an agreement in March to negotiate an amendment to the KORUS FTA, followed by the signing of President Moon Jae-in and US President Donald Trump in September.

In the case of the US, the amendment of the KORUS FTA is not a ratification of the US Congress but a "consultation" only.

The Korea-US FTA negotiations with the Ministry of Commerce, Industry and Energy, Jang Sung-gil, said, "The Korea-US FTA amendment agreement is the first FTA negotiated between the US and the US since the Trump administration took effect. Whether it is a trade dispute in the US and China. "

(Yonhap News, photo = Yonhap News)