Wine Institute Hails Passage of U.S.-Korea Free Trade Agreement

/PRNewswire/ - Congress approved the U.S.-Korea Free Trade Agreement (KORUS) which eliminates tariffs and other barriers to trade in most goods and services within five years. The agreement immediately removes the 15% tariff on U.S. wines imported to Korea, and repeals the 45% tariff on grape juice concentrate. The 15% tariff elimination also reduces the amount of excise, VAT and other taxes that are imposed on wine imports as a result of compounding. The elimination of Korea's high import duty on U.S. wine allows California wineries to be more competitive in this promising wine market. "Korea has a significant wine drinking culture, with import consumption growing 177 percent in the last decade. We commend the Congress and the Administration for enhancing our future growth in Korea and supporting our commitment and engagement in the important Asia-Pacific region," said Robert P. (Bobby) Koch, Wine Institute President and CEO. U.S. wine exports to Korea, 90 percent from California, were more than 500,000 cases valued at $11.2 million in revenues to wineries in 2010.

Full Story