Korea should show more commitment to US trade: ex-trade official

Wendy Cutler, vice president of the Asia Society Policy Institute and former U.S. negotiator for the Korea-U.S. FTA, speaks during an interview with The Korea Times at Ewha Womans University in Seoul, Wednesday. Korea Times photo by Shim Hyun-chul

Korea should “keep demonstrating its commitment" to cooperate and work with the United States in major trade areas, such as shipbuilding, semiconductors and energy, until both sides agree to a so-called July package deal, Wendy Cutler, a former top U.S. trade negotiator, said during an interview Wednesday.

“I think it is extremely important that Korea continues doing what it has been doing and demonstrates to the U.S. that it is prepared to cooperate and work on the major issues,” she told The Korea Times. “Korea has a lot to offer in the ongoing negotiation.”

The remarks came amid growing trade uncertainties in the era of President Donald Trump, as he pushes for provocative trade policies against U.S. allies after taking office in January.

Cutler served as a chief negotiator from the U.S. side during the Korea-U.S. Free Trade Agreement (KORUS FTA) in 2007. She is now vice president at the Asia Society Policy Institute.

Another round of a major trade negotiations between Korea and the U.S. is underway. A particular concern for Korea is how to receive U.S. tariff exemptions for steel products and vehicles.

Wendy Cutler, former U.S. negotiator for the Korea-U.S. FTA, delivers a lecture at Ewha Womans University in Seoul, Wednesday. Korea Times photo by Shim Hyun-chul

Korea’s trade delegation seeks to sign a comprehensive package deal in the ongoing tariff negotiation with the Trump administration by early July.

Asia’s fourth-largest economy is placing its top priority in abolishing a 25-percent tariff imposed on automobiles and steel imports, particularly by leveraging liquefied natural gas (LNG) and shipbuilding.

Regarding the strategy pushed by the Korean government, the trade expert said this is a step in the right direction.

“My view is that it should be a package deal,” she said. “What you want to do is to have an approach where nothing is agreed to until everything is agreed to."

She also advised the Korean trade delegation to focus more on signing “framework agreements,” rather than sticking to reaching a final agreement.

Wendy Cutler, former U.S. negotiator for the Korea-U.S. FTA, poses during an interview with The Korea Times at Ewha Womans University in Seoul, Wednesday. Korea Times photo by Shim Hyun-chul

“Korea needs to talk more and more not about final agreements, but more about framework agreements or memorandum of understanding or agreements in principle,” she said.

Last week, both countries held their first high-level trade talks under a format of "two-plus-two consultation" among finance and trade ministers from both sides. They have yet to confirm a timeline for the next trade talk.

“My view is, whatever is agreed to (until the potential July package deal), negotiations will continue after that, perhaps at the working level where they can work through a lot of these details, particularly on non-tariff measures.”