Proclamation 8783-To Implement the United States-Korea Free Trade Agreement
Issued 2012-03-06 by Barack Obama
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
On March 6, 2012, President Obama issued this proclamation to put into effect the United States-Korea Free Trade Agreement. Congress had previously approved the Agreement through the United States-Korea Free Trade Agreement Implementation Act, which authorized the President to make necessary changes to tariffs and duties to carry out the agreement. The proclamation modifies import duties on goods from Korea, establishes rules for determining whether goods qualify for preferential treatment under the agreement, and sets up administrative procedures for handling trade disputes and textile-related matters.
The action primarily affects American businesses that import goods from Korea and Korean companies that export to the United States. It also impacts domestic industries that compete with Korean products, particularly in the textile and apparel sectors, and motor vehicle manufacturers. The proclamation establishes an office within the Department of Commerce to provide administrative support for dispute resolution panels.
This matters because it changes the cost of doing business between the United States and Korea by adjusting tariffs on various products. The action implements a major trade agreement between the two countries that Congress had already approved, using authority that Congress granted to the President to make the technical modifications needed to put the agreement into practice.
AI-generated summary for educational purposes
Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
This proclamation ("Proclamation 8783-To Implement the United States-Korea Free Trade Agreement") imposes or modifies tariffs. The stated rationale is: "to be necessary or appropriate to carry out or apply Articles 2." Under Article I, Section 8, Congress holds the power to "regulate Commerce with foreign Nations" and to "lay and collect Duties." However, Congress has delegated significant tariff authority to the President through statutes like Section 232 of the Trade Expansion Act (national security tariffs) and Section 301 of the Trade Act (unfair trade practices).
The constitutional question is the scope of that delegation. Courts have historically upheld broad presidential trade actions under these statutes. But sweeping tariff measures that effectively rewrite trade policy — affecting billions in commerce — raise non-delegation doctrine concerns. When the executive branch makes economic policy of this magnitude unilaterally, it sits at the edge of the separation of powers.
Official Summary
Administration of Barack Obama, 2012 Proclamation 8783—To Implement the United States-Korea Free Trade Agreement March 6, 2012 By the President of the United States of America A Proclamation 1. On June 30, 2007, the United States entered into the United States-Korea Free Trade Agreement (the "Agreement"). The Congress approved the Agreement in section 101(a) of the United States-Korea Free Trade Agreement Implementation Act (the "Implementation Act") (Public Law 112–41, 125 Stat. 428). 2. Section 105(a) of the Implementation Act authorizes the President to establish or designate within the Department of Commerce an office that shall be responsible for providing administrative assistance to panels established under chapter 22 of the Agreement. 3. Section 201 of the Implementation Act authorizes the President to proclaim such modifications or continuation of any duty, such continuation of duty-free or excise treatment, or such additional duties, as the President determines to be necessary or appropriate to carry out or apply Articles 2.3, 2.5, and 2.6, and Annex 2–B, Annex 4&n