Korea-US FTA ‘well balanced,’ but economic talks possible: Moon

President Moon Jae-in on Wednesday said that the Korea-US Free Trade Agreement is well balanced, but Seoul is open to economic talks if the US sees room to become “even more reciprocal.”

Speaking to reporters on his flight to Washington, where he is set to hold a summit meeting with US President Donald Trump on Friday, Moon focused on the benefits the two countries reap from the deal.

“(After the Korea-US FTA took effect) the world’s trade volume fell 12 percent, but Korea-US trade increased 12 percent,” Moon said, adding that both countries have seen their share of each partner nation’s imports since the deal took effect in 2012.

Moon added that the US’ focus on its trade deficits with South Korea disregards such developments, and that the US’ trade deficit with South Korea is smaller than the deficits the US records in trade with countries such as China and Japan.

“In goods trade, the US is seeing deficits (from bilateral trade), but in the service sector we (South Korea) are in the red. If all factors are combined, then the deficits (of the US) are reduced,” Moon said.

“The (US’) trade deficit has been decreasing lately and furthermore, Korean firms’ investment in the US has increased greatly, and Korean firms’ investment is creating jobs for Americans.”

However, Moon left room for the possibility of economy-related talks with Washington.

“If it is deemed that the Korea-US FTA could be improved and developed to become even more reciprocal, that is an issue (Seoul and Washington) should discuss,” Moon said.

“In this regard, (I) think that economic talks could be held at any time.”

In contrast to Moon, Trump has expressed opposite views on a number of occasions, referring to the Korea-US FTA as “horrible” and a “disaster.” Trump said in an interview with the US media that his administration would redress the imbalances resulting from or in the deal. He has also suggested that the pact may even be terminated altogether.

By Choi He-suk (cheesuk@heraldcorp.com)
Korea Herald correspondent