eseoulpost
BusinessTrade
U.S. trade deficit with S. Korea not result of FTA: experts
min  |  min
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
승인 2017.07.24  
트위터 페이스북 미투데이 요즘 네이버 구글 msn
   

WASHINGTON, July 23 (Yonhap) -- The United States' trade deficit with South Korea is not a result of their bilateral free trade agreement, two experts here have said, dismissing President Donald Trump's push to revise the deal.

Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, and Euijin Jung, a research analyst at the same institution, made the case in a contribution to The Hill last week, saying it "makes no sense" to try to modify the FTA now.

"Trump sees U.S. bilateral trade deficits as prima facie evidence of unfair trade," they wrote. "Trump also believes that the absence of 'mirror image reciprocity' furnishes additional evidence of unfair trade -- in other words, higher foreign barriers on U.S. exports of a specific product than U.S. barriers on imports of the same product. Applying these tests, Trump tosses the Korea-U.S. Free Trade Agreement (KORUS FTA) into the basket of unfair deals, alongside NAFTA (North American Free Trade Agreement)."

   However, trade imbalances are caused by fiscal imbalances and the exchange rate, not free trade agreements, they said. When assessing the success of the KORUS FTA under the "right" criteria -- expansion in two-way goods and services trade and induced expansion in two-way foreign direct investment -- the deal is a "great success," they argued.

According to data provided by the authors, two-way trade in goods and services increased from US$129 billion in 2011 to $145 billion last year. Two-way investment also increased from $48 billion in 2011 to $74 billion in 2015.

The painstakingly negotiated KORUS FTA has been in effect since 2012 and has widely been considered a symbol of the economic alliance between the two countries.

But Trump has long vowed to revise the pact, calling it a "job killing" deal and a "disaster."

   "Foreign direct investment in the United States by Korean firms had already created about 45,000 jobs by 2014 (based on Korean data)," according to the experts. "For example, Korean automakers Hyundai and Kia operated their manufacturing plants in Alabama and Georgia with a complement of 6,700 workers in 2015."

   Earlier this month the Trump administration began a process to renegotiate the deal. In a letter to his South Korean counterpart, U.S. Trade Representative Robert Lighthizer requested a joint session in Washington next month to consider possible amendments and modifications.

The White House later cited that as one of the accomplishments during Trump's first six months in office.

"The Trump administration already has its hands full with NAFTA modernization," the experts said. "It makes no sense to re-open the KORUS FTA until NAFTA talks outline the shape of the new U.S. template for trade agreements. That probably won't happen before 2018."

   In the meantime, South Korea and the U.S. should work to dismantle remaining barriers to two-way trade and investment, they said.

< 저작권자 © eseoulpost 무단전재 및 재배포금지 >
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
트위터 페이스북 미투데이 요즘 네이버 구글 msn 뒤로가기 위로가기
이 기사에 대한 댓글 이야기 (0)
자동등록방지용 코드를 입력하세요!   
확인
- 200자까지 쓰실 수 있습니다. (현재 0 byte / 최대 400byte)
- 욕설등 인신공격성 글은 삭제 합니다. [운영원칙]
이 기사에 대한 댓글 이야기 (0)
Most Read
1
Argentina fetes 207th National Day anniversary at Grand Hyatt Hotel in Seoul on Thursday
2
Azerbaijan fetes 100th Republic Day in gala reception in Seoul on May 21
3
Worldwide campaigns by global citizens to spread a culture of peace and enact an international law for peace
4
Sharjah Ramadan Majlis: Despite Challenges, UAE Publishing Industry Upbeat about Future
5
Abdullah bin Zayed attends New York University's fifth graduation ceremony
6
UAE participates in international conference on victims of racial, religious violence in Middle East
7
Leadership of Peaceful Transition of Eastern European Power Becomes the Asset for Peace in Korea
8
World Green Economy Summit to kick off in October
9
Noor Bank rings bell to celebrate Nasdaq Dubai Listing of US$500 million Sukuk
10
World Health Assembly delegates endorses Global Action on Physical Activity, assistive technology
Photo News Green Biz
Suqia plays key role in enhancing UAE's global efforts to address water challenges
Suqia plays key role in enhancing ...
min
UAE Innovation Month: Innovative Initiatives by Sharjah Development Forum to Serve UAE’s Technical Sector
UAE Innovation Month: Innovative I...
min
UAE environmentalists to travel to ends of the earth to inspire change
UAE environmentalists to travel to...
min
Mohammed bin Rashid launches Marmoom Desert Conservation Reserve
Mohammed bin Rashid launches Marmo...
min
Masdar unveils locally manufactured all-electric Eco-Bus
Masdar unveils locally manufacture...
min
Photo News Sports
S. Korea women's football coach eyes knockout berth at 2019 World Cup
S. Korea women's football coach ey...
min
UAE golf back in spotlight with Ras al-Khaimah Challenge Tour Grand Final
UAE golf back in spotlight with Ra...
min
S. Korean named new leader of East Asian football body
S. Korean named new leader of East...
min
Nahyan bin Mubarak receives female people of determination who participated in Special Olympics Regional Games in Abu Dhabi
Nahyan bin Mubarak receives female...
min
PyeongChang 2018 chief organizer says 4 things led to successful Winter Olympic, Paralympic Games
PyeongChang 2018 chief organizer s...
min
PyeongChang Winter Paralympics end with celebration of breaking down barriers
PyeongChang Winter Paralympics end...
min
Opening day of Abu Dhabi’s Special Olympics IX MENA Games 2018 witnesses incredible sporting achievement
Opening day of Abu Dhabi’s Special...
min
Largest Winter Paralympics to close in PyeongChang
Largest Winter Paralympics to clos...
min
Photo News World
S. Korea women's football coach eyes knockout berth at 2019 World Cup
S. Korea women's football coach ey...
min
UAE golf back in spotlight with Ras al-Khaimah Challenge Tour Grand Final
UAE golf back in spotlight with Ra...
min
S. Korean named new leader of East Asian football body
S. Korean named new leader of East...
min
Nahyan bin Mubarak receives female people of determination who participated in Special Olympics Regional Games in Abu Dhabi
Nahyan bin Mubarak receives female...
min
PyeongChang 2018 chief organizer says 4 things led to successful Winter Olympic, Paralympic Games
PyeongChang 2018 chief organizer s...
min
PyeongChang Winter Paralympics end with celebration of breaking down barriers
PyeongChang Winter Paralympics end...
min
Opening day of Abu Dhabi’s Special Olympics IX MENA Games 2018 witnesses incredible sporting achievement
Opening day of Abu Dhabi’s Special...
min
Largest Winter Paralympics to close in PyeongChang
Largest Winter Paralympics to clos...
min
Photo News Opinion
Hyundai Motor CEO defends group's overhaul plan amid growing opposition
Hyundai Motor CEO defends group's ...
min
S. Korea's unification ministry seeks talks with N. Korea to implement summit agreements
S. Korea's unification ministry se...
min
PM calls for measures to minimize negative effects from U.S. sanctions on Iran
PM calls for measures to minimize ...
min
Citibank Korea reports 6.7 pct rise in Q1 profit
Citibank Korea reports 6.7 pct ris...
min
Moon welcomes planned dismantlement of N. Korean nuclear test site
Moon welcomes planned dismantlemen...
min
2 Koreas expected to hold high-level talks this week: Seoul official
2 Koreas expected to hold high-lev...
min
Firms making inquiries about opening operations at now-shuttered Kaesong complex
Firms making inquiries about openi...
min
Hyundai mulls acquiring electronic auto parts maker for growth
Hyundai mulls acquiring electronic...
min
Newspaper AboutNews ReportAdvertiseComplaintsPrivacy PolicyJuvenile protectionRejection of E-mail Collection
Gangnam-gu, Teheran 52 street in Tehran Bldg, 616(Yeoksam-dong)  |  Main Phone: 02) 563-0604  |  Fax: 02) 538-5665
Chairman : jeong-woo Lee  |  Advisor : byung-il Min  |  Publisher: jae-mo Kah  |  Editors: il-hong Kim
Registration Number 1928 Seoul ah  |  eseoulpost.com / eseoulpost.net / Global Korea.,Ltd
Copyright © 2011 eseoulpost. All rights reserved. mail to jaemokah@daum.com , kih10kr@empas.com/ www.globalkorea.info
arabafrica.net / UAE Interract / Emirtes News Agency(WAM)/ http://wam.org.ae / www.uaeinteract.com