The commitment was outlined in a joint fact sheet issued Friday (KST) by the White House and South Korea’s presidential office, following last month’s bilateral summit. The document states that Washington will ensure tariffs on Korean pharmaceutical goods do not exceed 15 percent.
The agreement is tied to Seoul’s sweeping $350 billion investment plan in the U.S., with $200 billion earmarked for strategic industries and $150 billion for shipbuilding. In return, reciprocal U.S. tariffs on Korean automobiles, parts and other products will be lowered from 25 percent to 15 percent.
“We view this as a very positive and fortunate outcome — pharmaceutical goods have been confirmed to receive most-favoured-nation treatment with a 15 percent tariff,” said the Korea Pharmaceutical and Bio-Pharma Manufacturers Association in a statement.
The association noted that while generic drugs will maintain duty-free status, the fact sheet did not mention biosimilars, a gap it said will require monitoring.
Likewise, the Korea Biotechnology Industry Organization welcomed the affirmation and said Korean firms were prepared for the worst.
“Most domestic pharmaceutical and biotech companies expanding into the U.S. market — such as Celltrion — have taken steps to minimise tariff burdens by establishing contract-manufacturing facilities in the United States, so the impact is expected to be limited,” the organisation said.
reporter
Kim Dong-young
davekim0807@ajupress.com
Copyright ⓒ Aju Press All rights reserved.
