Korean finance minister refutes Trump's attack on FTA

Korea's chief economic policymaker said Thursday benefits from the free trade agreement with the United States far outweigh the disadvantages, refuting opponents' arguments that the bilateral pact has hurt the American economy and jobs.

"Despite the fact that the KORUS FTA has brought enormous benefits to consumers and investors of the two countries, it is no secret that some criticize it based on the increased U.S. current account deficit," Finance Minister Yoo Il-ho said during a meeting with members of the American Chamber of Commerce in Korea.

"However, I would like to contend that the KORUS FTA's advantages easily outweigh the disadvantages."

Yoo's remark was a thinly veiled shot against U.S. Republican presidential candidate Donald Trump, who called the bilateral pact a "job-killing deal". In an economic speech in Pennsylvania on Tuesday, Trump claimed that the 2012 deal "doubled our trade deficit with South Korea and destroyed nearly 100,000 American jobs."

The U.S. real estate mogul's argument is also contrary to the U.S. trade agency's 2016 report released earlier in the day.

The International Trade Commission said the Korea-U.S. trade resulted in an increase of $4.8 billion-$5.3 billion in total American exports, the second-largest among a total of 13 free trade deals the U.S. has concluded.

Yoo said consumers in both countries enjoy benefits from wider choices and reasonable prices, using the example of American auto sales in Korea.
"The sales (of American automobiles) soared by 28 percent on an annual average, which makes Korea the second-largest market for U.S. carmakers exceeding Japan," he said. "Investors also enjoy profits from enlarged markets and more productive use of resources, leading to creating more decent jobs in both countries."

Yoo, who is double-hatted as deputy prime minister for Asia's fourth-largest economy, took note of the massive investment by leading Korean companies, including Samsung and Lotte, which built factories in U.S. and created jobs for Americans.

"Indeed, it is fair to say that the KORUS FTA has been the foundation for the mutually beneficial partnership between the two countries," he said.

The finance minister pledged to work with the business community and officials to reduce the remaining trade barriers and carry out restructuring efforts to tackle economic challenges.

"The Korean government acknowledges the need to upgrade regulations where necessary, a goal which will require close communication between policy makers and businesses." he said.

Yoo said the alliance between the two nations "took a leap forward" when the FTA was concluded, stressing concerted efforts to deal with rising uncertainties in the global economy following Britain's recent vote to leave the European Union.

"Expanding the horizon of Korea-U.S. cooperation will not only create quality jobs but provide an opportunity to reverse the low-growth trend," he said.  (Yonhap)