wnol.info November 24 2017


Seoul says it has strategy for FTA-INSIDE Korea JoongAng Daily

November 24 2017, 10:04 | Irvin Gilbert

Kevin Dietsch Getty Images

Kevin Dietsch  Getty Images

The Trump administration's calculated leak last weekend that it was considering withdrawing from the U.S. -Korea Free Trade Agreement ( KORUS) is truly a new low - even for this benighted White House.

Fischer wrote: "During this challenging time, we must demonstrate solidarity with our allies as they face significant threats".

At a time when South Korea is already facing a serious threat from Kim Jong-un, Donald Trump is not only criticizing our close ally on Twitter, he's also getting ready to withdraw from a free trade agreement with that country that benefits both countries.

Maschoff says exiting KORUS would cause the United States to lose market share to other countries.

Fischer, a member of the Senate Armed Services Committee, also noted that North Korea's "belligerent behavior" has given rise to increased tensions on the Korean Peninsula. Just as important, South Korea is a significant economic partner, our seventh largest export market, and a vital customer for USA manufacturers, services providers, farmers, and ranchers.

Fischer concluded: "We are witnessing one of the toughest farm economies since the 1980s". In other words, its annual exports to the US increased approximately 800% through the implementation of the KORUS FTA.

So the central US response needs to be enhanced deterrence - sending the unmistakable message, through multiple actions, that the United States would respond with devastating force to any irresponsible military action by Kim's regime. Pat Tiberi (R-OH) highlighted the trade deal's importance to US farmers.

Consulting with the private sector before making major trade policy decisions - like withdrawing from KORUS - "isn't just a good idea, it's the law", says U.S. Chamber of Commerce senior vice president John Murphy.

Cutting off access to Korean buyers would lower the demand for beef and zap profits across the industry, said Kent Bacus, director of global trade and market access at NCBA.

When the KORUS FTA took effect six years ago, the vehicle exports from the U.S.to South Korea totaled only US$381 million. If the US and South Korea can renegotiate their agreement, it will obviously help Trump to promote exports and reduce the deficit.

ROB SCOTT: We were supposed to benefit from the deal. However, assuming the FTA didn't exist, exports to the USA would shrink 2 percent while imports would drop 4.3 percent, resulting in a $29.4 billion surplus. The country is the fourth largest market for USA dairy exports.

While it's extremely unlikely the Trump administration will jump-start TPP negotiations, it should avoid further unforced errors that would damage our influence in the Pacific. In fact, some of our competitors, such as Australia, Canada and the European Union, have signed their own trade agreements with South Korea. "There are better ways to assess an agreement's success than by the trade balance, and there are better ways to address an agreement's perceived shortcomings in enforcement than to withdraw from it entirely"It's hard to imagine a move that would bring more self-harm to our economy and national security, with no benefit in return, than withdrawing from KORUS", he said".



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