www.USKoreaConnect.org • The Embassy of the Republic of Korea With the implementation of the U.S.-Korea Free Trade
Agreement (KORUS FTA), there are exciting new opportunities for Colorado businesses and communities.
By removing tariffs on goods and restrictions on services, this strengthened international partnership spurs business growth, creates jobs, opens new markets and provides 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 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
Trade Growth Jobs
• Colorado exported $340.6 million in goods to Korea in 2013.
• Colorado imported $299 million in goods from Korea in 2013.
• The KORUS FTA more closely connects Colorado businesses with Korea, a $1 trillion market with more than 50 million consumers.
• The KORUS FTA is a significant and important catalyst for job creation in Colorado.
Colorado’s Top Trade Items with Korea
(2013) ExportsMeat products
$166.2 million Semiconductors and components
$45.5 million Navigational and measuring instruments
$43.4 million General purpose machinery
$11.9 million
Computer equipment
$7.5 million
Aerospace products and parts
$6.7 million Pharmaceutical products
$5.6 million Colorado’s Top Beneficiary Trade Items
Exports Food/Agriculture
• Beef
40% tariff eliminated over 15 years
• Beef products (offal)
18% tariff eliminated over 15 years
Medical equipment
• Medical and surgical devices (e.g., endoscopes)
8% tariff eliminated immediately or over 3 or 10 years
Metals
• Aluminum alloys
8% tariff eliminated over 3 years
Imports Machinery/Electrical
• Batteries
3.5% tariff eliminated immediately
• Control panels (e.g. for x-ray machines)
.8% to 1.4% tariff eliminated immediately
• Antennas or reception applications for televisions
0% to 5% tariff eliminated immediately or over 3 years
Chemicals
• Copolymer compounds
6.5% tariff eliminated over 10 years
Imports
Pulp and paper
$124.1 million Semiconductors and components
$42.9 million Communications equipment
$39.7 million Electrical equipment
$20.6 million Navigational and measuring instruments
$7.4 million
Resins, rubbers and synthetic fibers
$6.3 million
www.USKoreaConnect.org
Businesses and communities around Colorado are taking advantage of opportunities from the KORUS FTA and the strong relationship between the United States and Korea.
Leprino Foods
Denver, Colorado
Industry: AgricultureProfile: 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 percent 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: ServicesProfile: Fentress Architects is a global design firm focused on the creation of sustainable and iconic architecture.
Founded in 1980, the firm has designed $26 billion of architectural projects worldwide that are 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 in a design competition for Incheon International Airport in Seoul. Fentress and the consortium were unanimously selected to design the airport, with Fentress serving as prime designer. The airport opened for business in 2001. Since then, Incheon International Airport has been voted the “World’s Best Airport” seven 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 materials for aquariums around the world.
Exports: Reynolds has been exporting materials to Korea for more than seven years, with its trade 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 held in Yeosu, Korea.
Growth: By eliminating tariffs, the implementation of the KORUS 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
Watch Us Grow Together
www.USKoreaConnect.org
Interesting Facts About Trade with Korea
Support From Around Colorado
Connections Beyond Trade
• Colorado exported $117.4 million in meat to Korea in 2013, an increase of $40.4 million from 2011 ($77 million).
• In 2013, Colorado exported $48.7 million in electric machinery to Korea, including everything from digital circuitry to telecommunications equipment and television and radio parts.
• Although Colorado may be better known for agriculture, it also exported
$6.6 million worth of aerospace products to Korea in 2013.
• In 2013, Colorado exported $5.2 million in plastics to Korea, $3.8 million more than in 2012.
Colorado Benefits from Exports
April 29, 2014
Manufacturers help to drive Colorado’s economy, with $7.9 billion in manufactured goods exports in 2013. Last year, $3.5 billion in exports was with our FTA partners [including Korea].
U.S. Trade Rep Pitches Obama’s Global Trade Agenda in Denver June 24, 2014
Colorado’s largest export customers [include] Korea. Among its most exported goods are electronic equipment, beef and other agricultural products; and medical devices.
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 2012, it was estimated that there were more than 17,830 Koreans and Korean Americans living in Colorado.
• There were approximately 370 students from Korea studying at universities in Colorado during the 2012/2013 academic year.
• 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
All figures in U.S. dollars. Information based on data from the U.S. International Trade Commission, U.S. Dept. of Agriculture, U.S. Census Bureau, Ministry of Trade, Industry and Energy 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 World Trade Organization, the U.S. Dept. of Commerce, the Colorado Department of Agriculture and the Colorado Office of Economic Development & International Trade.
Last updated: July 2014.
