US Trade Representative says “no plans to drop out” of KORUS FTA

Posted on : 2017-06-27 17:42 KST Modified on : 2017-06-27 17:42 KST
Robert Lighthizer nevertheless describes KORUS FTA as “troubling”, referring to $20-30 billion trade deficit
US Trade Representative Robert Lighthizer
US Trade Representative Robert Lighthizer

US Trade Representative Robert Lighthizer said the US has “no plans to drop out” of the South Korea-US Free Trade Agreement (KORUS FTA).

Speaking at a June 22 hearing before the US House Ways and Means Committee, Lighthizer said he found the agreement’ effects on the US trade deficit “troubling,” but declared, “There are no plans to drop out of course at this point.”

“I’m going right down the line and insisting with these people [South Korea] that you can‘t have barriers to trade and have a $20 billion or $30 billion surplus to us,” he added.

Lighthizer also said the US was concerned about overproduced Chinese steel and aluminum spreading throughout the world and affirmed import regulations on South Korean steel, saying that US exports of oil country tubular goods (OCTG) manufacturing from imports of overproduced Chinese steel were a major problem.

At a Senate Finance Committee hearing on June 21, Lighthizer responded to arguments that the US trade deficit was merely a numerical reflection of macroeconomic elements and bore no relation to trade policy. In his response, Lighthizer said he and US President Donald Trump perceived the persistence of a long-term trade deficit in the hundreds of billions of US dollars despite broad changes in the economy as indicating structural issues with global trade.

Lighthizer also said renegotiations on NAFTA could begin as early as Aug. 17, pending discussions with Congress. Noting that there was deadline for NAFTA renegotiations, he said the talks would continue until an innovative, high-level deal is reached.

By Cho Kye-wan, staff reporter

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