U.S. concerned about trade deficits after FTA with Korea

WASHINGTON (Yonhap News) ― A U.S. congressional committee voiced concerns Monday over growing deficits in trade with South Korea following the implementation of a free trade agreement.

But the Joint Economic Committee, composed of 10 members each from the Senate and the House of Representatives, said it’s premature to conclude that the FTA was a mistake.

In a report on U.S. trade with South Korea, the committee pointed out, “Since the free trade agreement was implemented in March 2012, imports from South Korea have increased while exports to South Korea have decreased.”

In the first half of 2012, the U.S. had net imports of nearly $11 billion in manufactured goods, it said.

The JEC, however, said, “It is still too early to assess the long-run impact of the U.S.-Korea FTA.”

“Analysts expect an eventual improvement in the bilateral trade deficit with South Korea,” it added. “In particular, the reductions in tariffs on agricultural products will increase food exports to South Korea.” (Yonhap News)

The U.S. signed the FTA with South Korea in 2007 and the two sides put it into effect in March.