Paper and Paper Products Sector

An Expert's View about Forestry, Logging and Wood Products in South Korea

Posted on: 11 Jun 2012

Korea is the 6th largest market for U.S. paper and paper products.

U.S. Department of Commerce International Trade Administration The U.S.-Korea Trade Agreement: Opportunities for the U.S. Paper and Paper Products Sector The U.S.-Korea Trade Agreement would provide signicant commercial opportunities for U.S. exporters: • Korea is the 6th largest market for U.S. paper and paper products; failure to pass the U.S.-Korea Trade Agreement could enable exporters from the EU and other countries to gain key advantages over U.S. exporters to Korea. • All U.S. paper product exports to Korea will receive duty-free treatment immediately upon implementation of the U.S.-Korea Trade Agreement. Korean paper and paper product taris currently range from 0 to 7 percent. Paper and Paper Products Sector Overview U.S. Paper and Paper Product Exports to • The paper and paper products sector accounted for over $808 Korea Averaged $808 Million million in U.S. exports to Korea over 2008-10 (average) or nearly 3 1 percent of total U.S. industrial exports to Korea. $1,000 • Top U.S. paper and paper products exports to Korea include $800 printed books and brochures, chemical wood pulp, uncoated liner in rolls or sheets, paper, and newspapers. $600 • In 2009, U.S. production of paper products was about $155 bil- $400 2 lion. $200 • U.S. SMEs exported over $153 million in paper products to Korea 3 $0 in 2008. 2008 2009 2010 Improved Market Access for U.S. Paper and Paper Products Exporters to Korea • Korean paper and paper products taris average 0.2 percent, ranging from zero to 7 percent. • All U.S. paper and paper products exports to Korea would receive duty-free treatment immediately upon implementation of the trade agreement. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Korea. The denition for paper and paper products in this report, unless otherwise cited, is based on Harmonized System (HS) Chapters 47-49. 2 U.S. Department of Commerce, U.S. Census Bureau, selected NAICS codes within 322, 323 and 339. Shipments used as a best available proxy for production. 3 U.S. Department of Commerce, U.S. Census Bureau, selected NAICS codes 322 and 323. April 2011 Additional information available at: www.trade.gov/KORUS in Millions USD Foreign Competition in the Korean Market • Korea signed a trade agreement with the EU in 2009, which is scheduled to enter into force in July 2011. Korea pres- ently has FTAs in force with ASEAN, Chile, India, Singapore, and EFTA. It also recently signed an FTA with Peru, which is also scheduled to enter into force this year. In addition, Korea is negotiating new agreements with Australia, Canada, Colombia, New Zealand, and Turkey; is considering launching FTA negotiations with China; and is exploring re-launch- ing its stalled negotiations with Japan. • EU exporters will immediately enjoy an average tari of zero percent upon entry into force of the EU-Korea FTA, while U.S. paper and paper products exporters will face an average most favored nation (MFN) tari of 0.2 percent until 4 entry into force of the U.S.-Korea Trade Agreement. Key States Exporting to Korea • Top U.S. states exporting paper and paper products to Korea include: California, Maine, Georgia, North Carolina, New York, Virginia, Washington, South Carolina, Alabama, and Oregon. Other Key U.S.-Korea Trade Agreement Commitments for the Paper and Paper Products Sector • Rules of Origin: The U.S.-Korea Trade Agreement rules of origin allow only products that are produced in the United States and Korea to receive preferences under the Agreement. The trade agreement rules of origin provide clear requirements for a good to be considered originating, including that a good must be wholly obtained or produced entirely in the territory of the United States or Korea as well as requirements on materials that are used in the production of the good. Importers may claim preferences under the trade agreement based on a certication by the importer, exporter, or producer or based on the importer’s knowledge that the good is originating, but certications need not be in a prescribed format. • Intellectual Property Rights: The U.S.-Korea Trade Agreement provides for robust protection and enforcement of intellectual property rights, includ- ing the extension of patent terms to compensate for unreasonable delays in granting an original patent. The trade agreement also has specic provisions for the protection of copyrighted works including measures designed to pre- vent piracy and unauthorized distribution over the Internet. Provisions to combat trademark counterfeiting include customs enforcement against goods-in-transit and streamlined customs procedures to increase eciency of enforce- ment. • Technical Barriers to Trade: The U.S.-Korea Trade Agreement strengthens disciplines to promote transparency in the way governments develop and apply technical regulations and related conformity assessment procedures (e.g., testing and certication). For example, Korea agreed to provide national treatment, or the same treatment applied to Koreans, to U.S. persons for participation in the development of standards, technical regulations, and conformity assessment procedures; and to accreditation, licensing or approval of U.S. conformity assessment bodies. • Transparency: The U.S.-Korea Trade Agreement includes strong transparency obligations, with commitments that the national gov- ernments of both parties would to the extent possible publish proposed regulations in advance, allow a reasonable opportunity to comment, address signicant substantive comments received, publish nal regulations in an ocial journal of national circulation, and provide sucient time between publication of the nal regulation and implementa- tion of the regulation to allow stakeholders to adjust. The U.S.-Korea Trade Agreement also includes strong anticorrup- tion provisions obligating the Parties to adopt and maintain anti-bribery measures in international trade and invest- ment. Parties further commit to maintain appropriate penalties and procedures to enforce such anticorruption rules, and to protect persons who report any of the criminal acts. 4 U.S. Department of Commerce calculations based on EU-Korea FTA and U.S.-Korea Trade Agreement tari commitments. April 2011 Additional information available at: www.trade.gov/KORUS U.S. Department of Commerce International Trade Administration The International Trade Administration - Your Global Business Partner The International Trade Administration (ITA) – a division of the U.S. Department of Commerce – strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of our trade laws and agreements. ITA also utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. For more information on exporting to Korea, please contact: • The ITA office of the U.S. Embassy in Korea at office.seoul@trade.gov or 82-2-397-4535, or by visiting our website www.export.gov/southkorea. • The ITA trade specialist in the U.S. nearest you by visiting www.export.gov/eac. For more information on the U.S.- Korea Trade Agreement, please visit www.export.gov/fta/korea and www.trade.gov/fta/korea. For more information on industry-specific issues, please visit www.trade.gov/mas/index.asp.
Posted: 11 June 2012

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