Us And South Korea Free Trade Agreement

President Trump and his Korean counterpart Moon Jae- discussed for the first time a Korus renegotiation at the U.S.-Korea summit in June 2017. Shortly thereafter, the U.S. Trade Representative, Robert Lighthizer, requested the convening of a special meeting of the KorUS Joint Committee.8 The special session took place in August, but could not find a solution. At the time, press reports indicated that Trump was indicating a possible U.S. exit from the agreement.9 After a new meeting in October, both sides agreed: 10 In 2016, South Korea`s car exports to the United States amounted to $16.2 billion, while its imports of U.S. cars amounted to $1.74 billion , as stated by a Commerce Department official based on data from the Korea Trade International Association. The automotive sector was the hardest hit: the U.S. trade deficit with Korea in the automotive sector increased by 55.7% in the first five years of the pact. U.S. car imports from Korea increased 64.2 percent, or $6.4 billion, in the fifth year of the Korea Free Trade Agreement. The Grand National Party (BSP) also considered its position when the agreement was ratified by the National Assembly. At a meeting of the Supreme Council held on 2 October 2008 at the party`s headquarters in Yeouido, GNP leaders expressed differing views.

Park Hee-tae, President of the GNP, and Chung Mong-joon, Supreme Member of the Council, sided with the argument of caution. Park said it was first necessary to develop a plan for farmers and fishermen negatively affected by the agreement. He proposed to review the government`s counter-measures and then discuss the adoption of the free trade agreement. But the leaders of South Korea`s National Assembly have called for a quick fix. Floor`s boss, Hong Joon-pyo, has reportedly said that the United States could propose renegotiations in the automotive sector, which they consider detrimental to the U.S. auto industry. He said it could happen after the U.S. election, but that it was necessary to ratify the free trade agreement by then.

[19] This result is worrisome because it brings trade policy back to the 1980s and uses an instrument that operates outside current international rules. The commitment to unrelated national security issues to push Korea to make concessions marks a new approach to trade negotiations, which we will likely see more of the Trump administration. Second, the korus amendments also aim to promote transparency in anti-dumping and anti-subsidy procedures36. The renegotiated conditions are a direct response to the frequent application of this type of import restriction by the United States. While this amendment may not do much to limit U.S. use of these commercial funds, improving transparency in this process is a net positive outcome. Record U.S. trade deficits with Korea have become the new standard under the free trade agreement – in 59 of the 60 months since the agreement came into force, the U.S. trade deficit with Korea exceeded the average monthly trade deficit in the five years prior to the agreement. The third round of discussions, which took place in March, coincided with the Trump administration`s announcement of new steel tariffs under Section 232 of the Trade Expansion Act of 1962.

Korea negotiated a tariff exemption in exchange for approval of the limitation of steel exports to the United States.