The American Insurance Association (AIA) on Friday commended the United States and Korean governments for successfully reaching agreement on the Korea-United States (KORUS) Free Trade Agreement. This evening’s announcement of the deal by President Obama comes after months of thoughtful negotiating between the two nations.
“AIA is thrilled that the US and Korea were able to come to terms over this historic trade agreement,” said David Snyder, AIA vice president and associate general counsel. “Moreover, we were pleased to see the Obama administration give this trade agreement the consideration it deserved, given its critical financial importance to both countries.”
Korea’s insurance market is one of the top ten largest in the world, yet its foreign market share, according to the U.S. International Trade Commission (ITC), is only three percent. An open insurance market in Korea is commercially significant for U.S. companies that want to increase the amount of insurance they presently write in Korea.
“The KORUS agreement is particularly significant as it sets a new and higher standard for insurance provisions in FTAs said David Snyder. “It recognizes that regulation of insurers should be transparent and equal regardless of whether the regulation is by government or industry groups and places restraints on the existing government-run insurance system in Korea.”
“Today’s landmark announcement is a huge success for both countries, and sets a welcomed precedent for subsequent free trade agreements moving forward,” concluded Snyder.