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Revised U.S.-S. Korea free trade deal takes effect

By
Wooyoung Lee
South Korean President Moon Jae-in (L) and US President Donald J. Trump (R) sign the official document on the revised free trade agreement (FTA) between the two allies at Lotte New York Palace in New York, New York, USA, on Sept. 24, 2018. Photo by Yonhap/EPA-EFE
South Korean President Moon Jae-in (L) and US President Donald J. Trump (R) sign the official document on the revised free trade agreement (FTA) between the two allies at Lotte New York Palace in New York, New York, USA, on Sept. 24, 2018. Photo by Yonhap/EPA-EFE

SEOUL, Dec. 31 (UPI) -- The revised free trade agreement between the U.S. and South Korea will take effect this week, Seoul's trade, industry and energy ministry said.

The two countries will notify each other Tuesday that legal procedures to ratify the revised trade deal have completed, according to the ministry.

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The U.S and South Korea began renegotiation for the trade pact earlier this year after U.S. President Donald Trump called the trade agreement a "terrible deal."

Under the revised deal, the U.S. extends a 25 percent tariff on imports of Korean pickup trucks by another 20 years until 2041.

South Korea will apply moderate emission standards for U.S. car imports when setting a new emission standard between 2021 and 2025. It will also allow eased emission restrictions for U.S. companies whose car imports are under 4,500 per year.

South Korea was able to revise the clauses on the investor-state dispute settlement to prevent ISD suit abuse by U.S. multinational companies.

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