Background Briefing

Annex 22-B

Annex 22-B requires the United States and Korea to create a Committee on Outward Processing Zones on the Korean Peninsula (Committee), comprised of Korean and US officials.  The Committee is charged with identifying areas in North Korea that may be designated as “outward processing zones” and establishing criteria that the zones must meet before being recommended for coverage under the accord.  If the Committee unanimously agrees that a zone has met the established criteria, it will notify US and Korean authorities, which are responsible for seeking legislative approval for “any amendments” needed to bring the zone under the agreement.  Annex 22-B fails to establish clearly, however, that legislatively-approved amendments are necessary to extend the accord.5   

5 Free Trade Agreement between the United States of America and the Republic of Korea (US-Korea FTA), Annex 22-B (emphasis added).