S. Korea says no agreement reached with U.S. on possible FTA amendment

Published : Aug 22, 2017 - 20:49 Updated : Aug 22, 2017 - 21:49

South Korea and the United States reached no agreement on possible amendments to their free trade pact, Seoul's top negotiator said Tuesday.

   The U.S. demanded that Seoul and Washington quickly begin negotiations on amending the free trade agreement (FTA), citing a spike in its goods trade deficit with South Korea after the pact went into effect, Trade Minister Kim Hyun-chong said.

   Still, South Korea did not agree with the unilateral U.S. proposal, Kim said, noting any decision should be made through consensus.

   "No deal has been reached in the special session of the joint committee" as the sides have different views, Kim said in a news conference after a meeting in Seoul.

   Kim earlier held talks with U.S. Trade Representative Robert Lighthizer through a 30-minute video conference, which was followed by a face-to-face meeting between the senior trade officials of the two countries in Seoul.

South Korea`s Trade Minister Kim Hyun-chong. Yonhap

   The special session came more than a month after Lighthizer requested a meeting to consider matters affecting the operation of the free trade deal, including "possible amendments and modifications to resolve several problems regarding market access in Korea for U.S. exports and, most importantly, to address the significant trade imbalance."

   "We explained to the U.S. side that the South Korea-U.S. FTA is not a cause of the U.S. deficit in goods trade by using objective data and logic," Kim said.

   The trade volume between the two countries increased to US$109.6 billion in 2016 from $100.8 billion in 2011, with South Korea's trade surplus reaching some $27 billion last year, up from $11.6 billion tallied five years earlier.

   Although the U.S. has a deficit in goods trade, it has consistently enjoyed a surplus in the services trade with South Korea.

   The bilateral open trade pact -- which went into effect in 2012 -- has widely been considered a symbol of deepening economic ties, but U.S. President Donald Trump has vowed to fix or scrap the free trade deal, calling it "horrible."

   Kim said that South Korea proposed that experts of the two sides carry out a joint study on the effects of the FTA and the cause of a U.S. deficit in goods trade so as to analyze and assess the overall situation.

   The U.S. is expected to review South Korea's proposal before notifying it of its position, Kim said. No specific time frame has been given.

   There was no immediate reaction from U.S. trade officials on the special session between the two sides.

   Kim also said South Korea is thoroughly preparing for all possibilities and will closely monitor the U.S. situation over the free trade pact.

   South Korean officials say the deal has benefited both Seoul and Washington in terms of trade, investments and employment.

   Tami Overby, senior vice president for Asia at the U.S. Chamber of Commerce, said last week that the free trade deal cannot be blamed for Washington's trade deficit with Seoul, claiming the losses would have been "significantly higher" without the deal.

   She said U.S. businesses believe the free trade deal is working well.