The Distilled Spirits Council congratulated Korean and United States governments for diffusing issues with the U.S. Korea Free Trade Agreement, which will lead to the elimination of tariffs on U.S. distilled spirits products in the South Korean market.
After the agreement goes into force, tariffs on all other categories of U.S. spirits such as vodka, gin, rum, etc, will be eliminated.
According to Distilled Spirits Council Senior Vice President Christine LoCascio, Korea’s 20 percent tariff on Bourbon and Tennessee Whiskey will be eliminated immediately upon implementation of the agreement.
“As the sixth largest spirits market in the world (volume) and valued at $10.1 billion (retail sales) in 2009, Korea is one of the most promising markets in Asia for U.S. spirits exports,” she said.
Exports of Bourbon and Tennessee Whiskey accounted for the overwhelming majority (85 percent in value terms) of total U.S. spirits exports to Korea in 2009, which were valued at almost $7 million (supplier value).
“It is clear that the U.S. spirits industry will benefit significantly from the new market opportunities created by the FTA,” LoCascio said. “We stand ready to support swift Congressional approval of the agreement.”
