Trump weighs pulling out of free trade pact
President has labeled agreement with South Korea as a ‘bad deal’
WASHINGTON — US President Donald Trump is considering triggering a withdrawal from a free trade agreement with South Korea, a business lobbying group said on Saturday, raising concerns about a move that could cause a fresh economic rift between allies at a moment of heightened tensions with a common foe.
The White House alerted lawmakers that a notification of intent to withdraw could come as soon as Tuesday, the US Chamber of Commerce wrote in an “all hands on deck” note calling on members to lobby the administration to stay in the deal.
The administration has been in talks to make adjustments to the trade agreement known as KORUS. A White House official noted that US Trade Representative Robert E. Lighthizer met with South Korean officials in July to begin negotiations. The official, who was not authorized to speak publicly on the matter and asked for anonymity, said talks are ongoing.
Trump has labeled the agreement, which went into effect in 2012, a bad deal. He’s made renegotiating free trade deals a key piece of his nationalist economic agenda. Among his first moves as president was scrapping his predecessor’s massive, multilateral Trans Pacific Partnership.
In its note to members, the chamber said a withdrawal from KORUS would represent a further retrenchment from Asia.
“The US will lose significant market share to the EU, Australia, China and others while sending a very dangerous message that America is not interested in doing business in Asia,” wrote Tami Overby, the group’s senior vice-president for Asia.
Trump, who has blasted the bilateral agreement in the past, acknowledged he was consulting with his advisers on the future of the agreement. But he did not elaborate on the timing. The agreement is “very much on my mind”, Trump told a reporter from Reuters as he surveyed storm damage in Houston.
Trump, along with First Lady Melania, arrived at Ellington Field, Texas before noon and joined hurricane survivors at a relief center in Houston as they lined up for lunch.
He stopped for hugs and posed for photos with flood survivors and offered words of encouragement for those affected by the deadly storm.
“The message is that things are working out well. Really, I think people appreciate what’s been done. It’s been done very efficiently,” he said.
Trump also credited the Texas government for relief efforts, and pledged full support from the federal government on reconstruction.
Trump first visited Texas on Tuesday, but stayed away from the most badly hit regions. He came under fire on Wednesday for tweeting that he “witnessed first hand the horror and devastation caused by Hurricane Harvey,” which was refuted by reporters.
The White House later issued a statement saying that Trump had met with local officials that were “eating, sleeping, breathing the Harvey disaster”, and it was “certainly a first hand account”.
The message is that things are working out well. Really, I think people appreciate what’s been done.” Donald Trump US president