The US has received a request from the government of South Korea to modify the rules of origin for certain textile and apparel products under the US-Korea Free Trade Agreement (KORUS).
In the request, which was submitted to the Committee for the Implementation of Textile Agreements (CITA) on 24 September, South Korea asked the US to consider whether the rules of origin in the trade agreement for certain yarns, woven fabrics, and knit apparel should be modified to address the potential to supply the fibres question in both countries.
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The fibres and yarns subject to this request, and their specific end-uses, include:
- Viscose rayon staple fibres classified under HTSUS 5504.10 or 5507.00 to be used in cotton yarn containing less than 85% by weight of cotton, not put up for retail sale.
- Textured and non-textured cuprammonium rayon filament yarns classified under HTSUS 5403.39 to be used in woven fabrics of artificial filament yarn.
- Cashmere yarn classified under HTSUS 5108 to be used in sweaters, pullovers, sweatshirts, vests, and similar articles; other made-up clothing accessories; and knitted or crocheted parts of garments or clothing accessories
As a result, CITA is accepting public comments through 16 November on whether these fibres and yarns can be supplied by the US domestic industry in commercial quantities in a timely manner.
It added that President Trump may proclaim a modification to the KORUS rules of origin for textile and apparel products after the US reaches an agreement with the Government of South Korea.
The United States and South Korea announced the signature of the renegotiated KORUS on the same day the short supply request was received (24 September 2018).
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By GlobalDataThe revised trade agreement will open up the Korean auto markets to US exports and allow the US to continue to impose a 25% tariff on Korean trucks until 2041. However, there was no change to the textile chapter.
