South Korea has announced a special investigation into potential breaches of the free trade agreement with the United States concerning country of origin markings. The Korea Customs Service (KCS) disclosed this development on Tuesday, as reported by Yahoo Finance. This move comes in anticipation of potential tariff measures by the U.S. government.
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According to the KCS, the probe will focus on ensuring that products exported to the U.S. are correctly marked with their country of origin. The agency emphasized its commitment to taking decisive action against companies that attempt to misrepresent foreign goods as South Korean products. This initiative aims to safeguard the interests of domestic businesses and maintain the integrity of South Korean exports.
Data from the IndexBox platform indicates that South Korea is one of only three countries in the Asia-Pacific region with a free trade agreement with the United States. This agreement eliminates nearly all tariffs on goods traded between the two nations. However, the KCS has expressed concerns that U.S. verifications might become more stringent following the imposition of higher tariffs, a scenario reminiscent of the first Trump presidency.
The investigation will particularly target products at high risk of false markings, especially those subject to U.S. anti-dumping tariffs or under close scrutiny by U.S. customs authorities. The Trump administration has indicated plans to implement reciprocal tariffs against major trading partners by April 2, following the introduction of steep tariffs on imports from countries like China, Canada, and Mexico that do not adhere to their free trade agreements.
