Korea’s auto parts and textile industries have benefited the most from lowered tariffs under a Seoul-Washington trade pact that took effect earlier this year, a report said Tuesday.

According to the report compiled by the Korea International Trade Association, the United States imported a total of $1.19 billion worth of Korean products that were subject to tariff cuts in April alone.

The bilateral free trade agreement, known as the KORUS FTA, was implemented on March 15, cutting or phasing out tariffs on 85.7 percent of U.S. goods and 87.3 percent of South Korean goods within three years.

The South Korean auto parts industry exported a combined $459.4 million to the U.S. in April, while 61.6 percent of the value benefited from lowered tariffs, higher than the total average of 59.2 percent, said the KITA report.

It also showed that South Korean textile companies utilized the KORUS FTA to their advantage, as 68.7 percent of textile exports to the U.S got tariff benefits.

Electronics devices, however, marked a relatively low 51.9 percent with a total of $1.12 billion won in exports, as the field already enjoyed tariff-free benefits even before the implementation of the FTA, added the KITA.

“This shows that South Korean businesses increasingly expand exports to the U.S. to utilize the FTA,” said the KITA report. 

(Yonhap News)