With the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA), there are exciting new opportunities for Colorado’s businesses and communities.
By removing tariffs on goods and restrictions on services, this strengthened international partnership will spur business growth, create jobs, open new markets and provide access to a larger pool of consumers.
Colorado, famous for its breathtaking scenery and outdoor activities, is also home to a wide range of businesses, from agriculture to electronics. These organizations are capitalizing on expanded opportunities created by the reduction of tariffs, elimination of trade barriers, and the free flow of products, services and ideas between Colorado and Korea.
Below are a few of the products that will most benefit from the KORUS FTA.
O p p o r t u n i t i e s f o r C o l o r a d o
www.USKoreaConnect.org • The Embassy of the Republic of Korea
Exports Growth Jobs
• Colorado exported $226.1 million in goods to Korea in 2011, up
$25.3 million from 2010.
• Eliminating tariffs helps Colorado businesses increase exports to Korea, creating opportunities for growth.
• The KORUS FTA more closely connects Colorado businesses with Korea, a $1 trillion market with more than 48 million consumers.
• Increased demand from access to a larger pool of consumers creates the need for more jobs.
• The KORUS FTA is a significant and important catalyst for job creation in Colorado.
• The agreement is expected to create jobs in Colorado as a result of increased exports and economic growth.
Colorado’s Top Export Items to Korea (2011)
Meat $103.2 million
Navigational and measuring instruments
$33.2 million
Computer equipment
$10.8 million
Semiconductors and electrical components
$10.7 million
Commercial and service industry machinery
$9.4 million Colorado’s Top Beneficiary Export Items
Agriculture
• Frozen beef (boneless and with bone)
40% tariff eliminated over 15 years
• Boneless beef (fresh or chilled)
40% tariff eliminated over 15 years
• Whole hides and skins
3% tariff eliminated immediatelyMachinery
• Parts for machinery, plant or laboratory equipment
0-8% tariff eliminated immediately or over 3 years• Electrical machines and apparatuses
0-8% tariff eliminated immediately-5 years
Other Industries
• Medical and surgical devices (e.g. endoscopes)
8% tariff eliminated immediately-10 years• Plastic plates and sheets
6.5% tariff eliminatedimmediately
• Parts for cinema projectors
8% tariff eliminatedimmediately
www.USKoreaConnect.org
Businesses, communities, counties and cities are taking advantage of opportunities from the KORUS FTA. Examples, such as the ones below, are being seen around Colorado.
Watch Us Grow Together
Leprino Foods
Denver, Colorado Industry: Agriculture
Profile: Leprino Foods began as a small family-owned grocery store in Denver. Today, it has grown into the world’s largest manufacturer of premium mozzarella cheese and one of the United States’ largest exporters of whey and lactose products.
Exports: Leprino Foods currently exports cheese and whey products to more than 40 countries throughout Asia, Central and South America, Europe, the Middle East, North Africa and Oceania. Over the past several years, Korea has become a key export market for the company.
Growth: Before the implementation of the FTA, Leprino Foods’ products faced tariffs of up to 49.5% when entering Korea. Now, these tariffs will be phased out over the next 10-15 years. The removal of tariffs and increased market access will enable the company to export greater volumes of its products, add new jobs and expand its operations. The FTA also helps ensure that Leprino Foods stays competitive with other countries importing food into Korea.
Fentress Architects
Denver, Colorado Industry: Services
Profile: Fentress Architects is a global design firm focused on the creation of sustainable and iconic architecture.
Founded in 1980, the firm has designed projects worldwide visited by more than 300 million people each year.
Exports: Fentress first entered Korea in the early 1990s in a partnership with a consortium of four Korean architecture firms on a design competition for Incheon International Airport in Seoul. Fentress and the consortium were unanimously selected to design the airport, with Fentress serving as the prime designer. The airport opened for business in 2001. Since then, Incheon International Airport has been voted the “World’s Best Airport” 7 years in a row by the Airports Council International.
Growth: In anticipation of implementation of the KORUS FTA, representatives from Fentress made numerous trips to Korea to meet with contractors on possible projects. Among other benefits, the FTA’s strong provisions regarding intellectual property rights make Korea an increasingly attractive market. By protecting both Fentress and Korean companies, there are more opportunities to partner and pursue design projects there.
*Photograph (top) of Incheon International Airport, courtesy of Fentress Architects © Paul Dingman.
Photograph (bottom) of Busan Aquarium in Busan, Korea, made with materials from Reynolds Polymer Techonology, Inc.
Industry: Manufacturing
Profile: Reynolds Polymer Technology, Inc. is an acrylic manufacturer that makes viewing windows for large aquariums – like those you might see at SeaWorld, Walt Disney World or major resorts. Operating for more than 25 years, Reynolds has provided cutting-edge materials for aquariums around the world.
Exports: Reynolds has been exporting materials to Korea for more than seven years, with the volume picking up substantially over the past three years. Most recently, Reynolds provided materials for an aquarium, underwater dome room and viewing windows for an exhibit at the 2012 International Expo being held in Yeosu, Korea.
Growth: By eliminating tariffs, the implementation of the FTA allows Reynolds to offer more competitive pricing and sell its products to a broader range of Korean customers. It also opens the door for Reynolds to pursue smaller projects that may have not been possible in the past due to high tariffs.
Reynolds Polymer Technology, Inc.
Grand Junction, Colorado
www.USKoreaConnect.org
Interesting Facts About Trade with Korea
Support From Around Colorado
Connections Beyond Trade
• Colorado is ranked fourth nationally in beef exports to Korea, supplying more than 11% of all U.S. beef in 2011.
• Colorado’s food exports to Korea increased by more than 530% between 2007 and 2011.
• In 2011, Colorado exported $55.9 million in computers and electronics to Korea, including everything from digital circuitry and semiconductors to telecommunications equipment and television and radio parts.
• Although Colorado may be better known for agriculture, it also exported
$21.5 million worth of non-electrical machinery to Korea in 2011.
Editorial: South Korea Free- Trade Deal Would Benefit Colorado
April 28, 2011
“The deal would directly benefit a variety of Colorado industries and agricultural interests, including wheat and beef producers, and thus boost jobs and incomes.”
Colorado Farmers Await Free Trade Vote
October 10, 2011
“Ivan Steinke, president of the Colorado Pork Producers Council, says the free trade deal will lead to increased demand and higher prices for Colorado hog farmers...
The deal will help Colorado pork products stand on their own.”
Remarks from Senator Mark Udall (D-Colorado)
March 20, 2012
“In agriculture, exports have grown exponentially. And the future will continue to look bright as free trade agreements with Korea, Panama and Colombia are implemented, and we seek greater access to markets in Asia.”
• In 2010, it was estimated that there were almost 30,000 Koreans and Korean Americans living in Colorado.
• There are approximately 470 students from Korea studying at universities in Colorado.
• Colorado’s most distinct Korean neighborhood is in Aurora. The neighborhood has Korean supermarkets, restaurants and shops and is home to several Korean-language newspapers and websites.
Incheon International Airport in Seoul, Korea was designed by Denver firm Fentress Architects. Courtesy of Fentress Architects © Paul Dingman.
www.USKoreaConnect.org • The Embassy of the Republic of Korea
National Snapshot
The U.S.-Korea Free Trade Agreement (KORUS FTA) is an international partnership that connects the United States with the dynamic and growing Korean and Asia-Pacific markets.
All figures in U.S. dollars. Information based on data from the U.S. International Trade Commission, U.S. Department of Agriculture, U.S. Census Bureau, Ministry of Knowledge Economy of Korea, Export-Import Bank of Korea, Korea International Trade Association, Bureau of Economic Analysis, the Institute of International Education, the International Monetary Fund, the Colorado Department of Agriculture, and the Colorado Office of Economic Development & International Trade.
Last updated: May 2012.
