Pence bemoans trade with South Korea,
Vice President Pence told business leaders in Seoul on Tuesday that the U.S. trade deficit with South Korea is “concerning ” and vowed to review trade agreements to ensure that American companies benefit.
The tone of Pence’s remarks, as he concluded his trip to South Korea in the midst of his 10-day trip to Asia, was markedly different from when he assured South Koreans over the weekend that U.S. resolve to support and defend South Korea was unwavering in the face of North Korea’s provocation.
“Despite the strong economic ties between the United States and South Korea, we have to be honest about where our trade relationship is falling short,” Pence told the American Chamber of Commerce in Seoul. “Our businesses continue to face too many barriers to entry, which tilts the playing field against American workers and American growth. President Trump has made it clear that the United States will pursue an America first policy in trade and exchange. We’re reviewing all of our trade agreements across the world to ensure that they benefit our economy as much as they benefit our trading partners.”
The U.S. trade deficit with South Korea has enlarged since the countries signed the U.S.-Korea Free Trade Agreement (KORUS) in 2012, Pence noted. The deal, at least on paper, opened doors for American exporters of goods, services and agricultural products by lowering tariffs and other barriers. But the U.S. trade deficit in goods with South Korea grew to $27.6 billion last year from $16.6 billion in 2012, according to U.S. government data.
“Most concerning is the fact that the United States trade deficit with South Korea has more than doubled since KORUS has come into effect,” Pence said. “That’s the hard truth of it.”
About 80% of U.S. exports of consumer and industrial products to South Korea became duty free when it was signed. The U.S. International Trade Commission estimates it adds $10 billion to $12 billion to the U.S. GDP based on reduction of Korean tariffs and quotas on goods.