Korea proposes holding KORUS FTA talks in Seoul
The trade ministry has suggested holding talks on U.S.-initiated renegotiations over the Korea-U.S. Free Trade Agreement (KORUS FTA) in Seoul soon after government restructuring is completed.
In a letter sent to U.S. Trade Representative Robert Lighthizer, Trade, Industry and Energy Minister Paik Un-gyu said that the Seoul government is aware of Washington’s concerns over its trade deficit in goods with Korea.
He stated that Korea is “willing to engage in constructive discussions on ways to foster an expanded and balanced bilateral economic and trade relationship.”
Following U.S. President Donald Trump’s continuous pressure that the bilateral deal should be renegotiated to lessen his country’s trade deficit with Korea, the USTR requested convening “a special joint committee meeting under the KORUS FTA to start the process of negotiations to remove barriers to U.S. trade and consider needed amendments to the agreement.”
Paik said Korea agreed to set up the joint committee in accordance with the due procedures set forth in the deal.
According to KORUS FTA Article 22-4, “the special session of the joint committee shall convene within 30 days of the request of a party unless both sides agree otherwise, with such sessions to be held in the territory of the other party or at such location as the parties may agree on.”
While the USTR suggested that the meeting take place in Washington next month, Paik pointed out that the Korean government is still in the process of restructuring, which is to include the establishment of a Trade Office within his ministry, and the appointment of a new minister for trade, who will co-chair the joint committee.
“Under these circumstances, I suggest that the special session of the joint committee be convened at an appropriate date in the near future after the restructuring process is finalized.”
Regarding the venue, Paik proposed that it be held in Seoul.
“I believe that Seoul should be giv- en first consideration, as stipulated in the KORUS FTA.”
He also suggested that the joint committee discuss how to objectively examine, analyze and assess the effects of the KORUS FTA since its enforcement so that both sides will have “a common understanding of the issues and the effects of the KORUS FTA on overall bilateral trade.”
He stressed that the KORUS FTA has struck a balance of interests, generating mutually beneficial outcomes in terms of bilateral trade, investment and employment since it went into force. According to an analysis by the U.S. International Trade Commission, the bilateral agreement actually helped the United States decrease its deficit with Korea by $15.8 billion in 2015.