Seoul to send response team to Washington
By Park Hyong-ki
The United States has officially requested South Korea to start the "process of negotiating to remove barriers to U.S. trade and consider needed amendments" to the U.S.-Korea free trade agreement (KORUS FTA).
In response, the Korean government said Thursday it will send a team to the United States to coordinate a meeting of a joint committee on the trade deal.
U.S. Trade Representative (USTR) Robert Lighthizer sent a letter to South Korean Trade Minister Joo Hyung-hwan, calling for the special joint committee meeting to start talks on the KORUS FTA's terms. Korea has to respond, set up the meeting date and hold the session with the U.S. within 30 days.
The Donald Trump administration apparently wants to renegotiate the terms of the agreement; but the South Korean government is playing this down.
"This does not mean that the two sides will be renegotiating the deal," a Cheong Wa Dae official said.
The USTR is proposing the joint committee possibly to look into amending and modifying the KORUS FTA, and following it up with more talks on a revision.
The USTR seeks to resolve "several problems regarding market access in Korea for U.S. exports, and to address its significant trade imbalance."
It said Korea is an important ally with which the U.S. seeks "free, fair and balanced trade" that can further strengthen relations
The U.S. wants to reduce its goods deficit with trading partners, including Korea. It has had a deficit with Korea for nearly two decades, the USTR noted in the letter.
The latest move follows a summit last month when Presidents Moon Jae-in and Trump agreed on expanded ties "with reciprocal benefits and fair treatment."
The U.S. request for talks to amend the accord appears to be a step back from President Trump's earlier demand for a renegotiation or withdrawal.
Trump has called the KORUS FTA, along with the North American Free Trade Agreement (NAFTA), "job killers" that are hurting American workers and businesses.
The trade ministry said it has not yet appointed a new trade representative.
Korea is also not obliged to accede to U.S. demands for KORUS FTA amendments. Both sides must agree on an agenda before they can officially launch talks.
"Both sides are expected to talk about mutual interests and concerns through the committee," Yeo Han-koo, the ministry's director general for trade policy, said. "The agenda will need to be agreed upon and decided at the committee."
Observers suggested that Korea should not rush into talks for amendments.
"This is unlikely to be the last demand by the U.S. for a change in the bilateral trade accord," Song Ki-ho, a trade attorney at Suryun Law, said.
"If both sides finalize the amendment, the U.S. will further move to apply its (renegotiated) NAFTA model on the Korea-U.S. FTA. Korea should not rush into modifying the deal."
Korea is the United States' sixth-largest trading partner, with bilateral trade of $112.2 billion in 2016, according to the USTR.
The U.S. had a goods trade deficit of $27.7 billion with Korea last year, down 2.3 percent from 2015.
It had a services trade surplus of $10.7 billion in the same period, up 2.6 percent from 2015.
U.S. exports to Korea accounted for 2.9 percent of overall U.S. exports in 2016.
Its top shipments were electrical machinery, aircraft, optical and medical instruments, and vehicles.
By Park Hyong-ki
.jpg/dims/resize/740/optimize) |
| U.S. Trade Representative Robert Lighthizer / Yonhap |
In response, the Korean government said Thursday it will send a team to the United States to coordinate a meeting of a joint committee on the trade deal.
U.S. Trade Representative (USTR) Robert Lighthizer sent a letter to South Korean Trade Minister Joo Hyung-hwan, calling for the special joint committee meeting to start talks on the KORUS FTA's terms. Korea has to respond, set up the meeting date and hold the session with the U.S. within 30 days.
The Donald Trump administration apparently wants to renegotiate the terms of the agreement; but the South Korean government is playing this down.
"This does not mean that the two sides will be renegotiating the deal," a Cheong Wa Dae official said.
The USTR is proposing the joint committee possibly to look into amending and modifying the KORUS FTA, and following it up with more talks on a revision.
The USTR seeks to resolve "several problems regarding market access in Korea for U.S. exports, and to address its significant trade imbalance."
It said Korea is an important ally with which the U.S. seeks "free, fair and balanced trade" that can further strengthen relations
The U.S. wants to reduce its goods deficit with trading partners, including Korea. It has had a deficit with Korea for nearly two decades, the USTR noted in the letter.
The latest move follows a summit last month when Presidents Moon Jae-in and Trump agreed on expanded ties "with reciprocal benefits and fair treatment."
The U.S. request for talks to amend the accord appears to be a step back from President Trump's earlier demand for a renegotiation or withdrawal.
Trump has called the KORUS FTA, along with the North American Free Trade Agreement (NAFTA), "job killers" that are hurting American workers and businesses.
The trade ministry said it has not yet appointed a new trade representative.
Korea is also not obliged to accede to U.S. demands for KORUS FTA amendments. Both sides must agree on an agenda before they can officially launch talks.
"Both sides are expected to talk about mutual interests and concerns through the committee," Yeo Han-koo, the ministry's director general for trade policy, said. "The agenda will need to be agreed upon and decided at the committee."
Observers suggested that Korea should not rush into talks for amendments.
"This is unlikely to be the last demand by the U.S. for a change in the bilateral trade accord," Song Ki-ho, a trade attorney at Suryun Law, said.
"If both sides finalize the amendment, the U.S. will further move to apply its (renegotiated) NAFTA model on the Korea-U.S. FTA. Korea should not rush into modifying the deal."
Korea is the United States' sixth-largest trading partner, with bilateral trade of $112.2 billion in 2016, according to the USTR.
The U.S. had a goods trade deficit of $27.7 billion with Korea last year, down 2.3 percent from 2015.
It had a services trade surplus of $10.7 billion in the same period, up 2.6 percent from 2015.
U.S. exports to Korea accounted for 2.9 percent of overall U.S. exports in 2016.
Its top shipments were electrical machinery, aircraft, optical and medical instruments, and vehicles.
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