The Korea International Trade Association (KITA) has asked the Office of the US Trade Representative (USTR) to delay or reduce tariffs imposed under Section 301 of the Trade Act.
In an opinion submitted to the USTR under the name of KITA Chairman Yoon Jin-shik on Monday, the association said, "Please reconsider the imposition of the 12.5% additional tariff on Korean-made products," and proposed either delaying implementation or lowering the rate to 10%. It also requested that products from companies that strictly prohibit trade in goods produced through forced labor be excluded from the additional tariff.
Earlier, on the 2nd of last month, the USTR said it planned to impose additional tariffs of 10% or 12.5% on 60 economies following a Section 301 investigation into forced labor across countries worldwide. After conducting investigations into "overproduction" and "forced labor" under Section 301 in March, the USTR notified Korea that it fell under both categories and would apply a tariff rate of 12.5%. The Korean government will present its position at a public hearing on the 9th, after which the USTR will decide whether to actually impose the tariffs.
KITA stressed that "it is difficult to prove specific cases or a causal relationship demonstrating that certain Korean products, using raw materials produced through forced labor, inflicted significant harm on US companies." It also expressed concern, saying, "If the United States imposes broad additional tariffs on Korean products merely on the grounds that there is no formal ban on imports made with forced labor, this will not help strengthen the economic interests and industrial competitiveness of either the United States or Korea." The association added, "If the United States imposes additional tariffs on intermediate goods used in Korean companies' US investments and production, it could instead cause supply chain disruptions."
KITA emphasized that although Korea does not have explicit measures banning the import of products made through forced labor as defined by the USTR, it has ratified relevant international treaties and strictly prohibits forced labor through domestic law. It also explained that many Korean companies implement internal policies or codes of conduct that strictly prohibit transactions related to goods produced through forced labor.
