The US and South Korea are set to hold the first talks on updating their bilateral free trade agreement this week as part of ongoing moves by the US to try to cut its trade deficit.
The United States has been pushing for “possible amendments and modifications” of the US-Korea Free Trade Agreement (KORUS), with meetings on the issue so far held August in Seoul and in October at the offices of the US Trade Representative.
The US says since KORUS went into effect in March 2012, its trade deficit in goods with Korea has doubled from US$13.2bn to $27.6bn.
The two will now meet in Washington DC on Friday (5 January) and could hold subsequent rounds every three to four weeks, according to press reports.
Korea’s Trade Ministry last month said the domestic procedures necessary to consider amending the KORUS agreement, including consultations with lawmakers and stakeholders, have been completed.
Trump administration officials have said they want to resolve outstanding issues with respect to KORUS implementation and secure revisions that will lead to fair, reciprocal trade. Korean officials have said that while the agreement could be strengthened they see no need for substantial revisions because it has generated mutually beneficial outcomes in terms of trade, investment, and employment.
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By GlobalDataCustoms and international trade law firm Sandler, Travis & Rosenberg says no details have yet been made available on the specific changes the two sides might seek, other than placing a priority on reducing the trade deficit.
According to Yonhap News Agency, Korea’s Trade Ministry said topics of discussion are expected to include goods and services, investment protection, and rules of origin. The Ministry added that it will “propose our demands equivalent to the US calls and push for decreasing the scope of the renegotiations”.
A USTR press release notes that US services exports to Korea stalled between 2013 and 2016, another issue the US may seek to resolve in the forthcoming negotiations.
