US Announces Plans to Renegotiate Free Trade Deal With South Korea

US Announces Plans to Renegotiate Free Trade Deal With South Korea

Instead, U.S. exports of goods to South Korea fell from 2011 to a year ago, and the U.S. trade deficit in goods with South Korea widened from $13.2 billion to $27.6 billion over the same period. US President Donald Trump described the agreement, known as KORUS FTA, as a "horrible" deal, that must be either terminated or renegotiated. In particular, "The special joint committee can consider an amendment to the KORUS FTA or revise the agreement and interpret provisions", the USTR added.

U.S. Trade Rep. Robert Lighthizer said in a letter Wednesday to South Korean Trade Minister Joo Hyung-hwan that the United States wants to meet to discuss "possible amendments and modifications" to the pact.

He also said that the U.S. has had a persistent goods deficit with Korea for almost two decades.

As explained during a summit between President Moon Jae-in and President Donald Trump in June, the two sides "need to closely analyze and evaluate the effects of the (existing) South Korea-U.S. FTA after it went into effect and talk about whether the South Korea-U.S. FTA is the cause of the trade imbalance between the two countries", said the spokesman, Cho June-hyuck.

A South Korean trade official told Reuters on Thursday that it will hold the proposed joint committee either in Seoul or Washington, but this does not necessarily mean that South Korea will renegotiate the deal.




Terms of the trade deal call for the talks to begin within 30 days. The issue topped the agenda at a meeting between involving cabinet members from the two countries, including Lighthizer, U.S. Vice President Mike Pence and Commerce Secretary Wilbur Ross. But some experts say the US enjoys a trade surplus under the deal in the services sector, such as banking and tourism.

The new Moon Jae-in administration is seeking to create a new trade negotiations office to be headed by a trade minister.

"This is quite different from what the previous administration sold to the American people when it urged approval of this agreement", he said.

Trump railed against trade agreements on the campaign trail, blaming them for the loss of American jobs as he courted support from working class voters, while supporters say that removing barriers to business increases prosperity overall. Experts also say that even though the U.S. has a deficit in goods trade, the country has enjoyed surpluses in services trade under the deal, and United States deficits in goods trade would have been larger had it not been for the pact.

"It's imperative that we work together to ensure that the economic partnership between our two countries is not only strong and vibrant, but also fair, and that the KORUS Agreement benefits the US economy as much as it does that of Korea", he said.

Related Articles

  • Health of Liu Xiaobo, Nobel Laureate, Is Said to Be Failing

    Health of Liu Xiaobo, Nobel Laureate, Is Said to Be Failing

    The 61-year-old dissident, who has late-stage liver cancer, is on dialysis and is at the resuscitation stage, the hospital said in a statement.
    Marks & Spencer sales slip as clothing continues to stall

    Marks & Spencer sales slip as clothing continues to stall

    Clothing sales of £852.1m were down by 1.2% LFL, while food sales were down by 0.1% LFL but up by 4.5% in total. Meanwhile, food like-for-likes stayed flat in the first quarter, showing a marginal 0.1 per cent dip.
    Novak Djokovic hits out after clinching quarter-final spot

    Novak Djokovic hits out after clinching quarter-final spot

    Kerber, Venus Williams and French Open champion Jelena Ostapenko led the complaints on Monday and Navratilova has backed them up. Sometimes, in the heat of the moment, you exchange things", Djokovic said. "I don't know how to describe it".
  • Paige Explains What Led to Alberto El Patron Domestic Violence Allegations

    Paige Explains What Led to Alberto El Patron Domestic Violence Allegations

    Del Rio can be heard on the recording telling Paige to call the authorities and later saying, "I'm pressing charges against you". El Patron is under investigation for domestic assault after an incident with his fiancee, former WWE Divas Champion Paige .
    Rob Kardashian Allegedly Apologizes To The Women In His Family

    Rob Kardashian Allegedly Apologizes To The Women In His Family

    He said he just wanted to have a normal family with his daughter, Dream since he came from a two sided family which affected him. TMZ reports that Rob , "said he regrets he didn't deal with the Chyna drama privately and said it wouldn't happen again".
    Man Killed By Takata Airbag While Working On A Honda

    Man Killed By Takata Airbag While Working On A Honda

    The expanded recall comes one day after Honda confirmed the 12th US death - and 17th worldwide - tied to a faulty Takata air bag. The problem touched off the largest automotive recall in US history involving up to 69 million inflators and 42 million vehicles.
  • Conor McGregor taunts Floyd Mayweather with 'insult suit'

    Conor McGregor taunts Floyd Mayweather with 'insult suit'

    The press conference will occur on the biggest cross-mixed fight in history at the Budweiser stage in the heart of Toronto. A close-up of the Dublin fighter's suit revealed "f*** you" written along the immaculate pinstripes.
    British court opens new hearing in Baby Charlie case

    British court opens new hearing in Baby Charlie case

    Siegel said the baby was in discomfort, and while the treatment won't bring about a cure, it could potentially extend his life. Judge Nicholas Francis gave the couple until Wednesday afternoon to present the evidence and set a new hearing for Thursday.
    Theresa May ignores business leaders' pleas and heads for cliff edge

    Theresa May ignores business leaders' pleas and heads for cliff edge

    He told the Commons Treasury Select Committee that American competitors such as Boeing would be "delighted" if that happened.
  • Heavy rains trigger Flood Watch across the area

    Heavy rains trigger Flood Watch across the area

    If you live in one of these areas, monitor conditions and be ready to seek higher ground if warnings are issued. Madison had plenty of rain Wednesday morning, but only seven-tenths of an inch was recorded at the airport.
    16 dead in military plane crash in Mississippi

    16 dead in military plane crash in Mississippi

    Monday, the Marine Corps said in a statement , after it departed from the Marine Corps Air Station Cherry Point in North Carolina. Kristine Rascicot confirmed that the plane that crashes was a USMC KC-130, but said she was not able to release any more details.
    New Audi A8 revealed - prices, specs and engines

    New Audi A8 revealed - prices, specs and engines

    Later, there will be a long-wheel base Audi A8 L e-tron quattro with plug-in hybrid drive offering a 31-mile EV range. Expect to see the 2019 Audi A8 in US showrooms in mid- to late 2018 with prices starting around the $100,000 mark.