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Moon says revised KORUS FTA will benefit both countries

Yonhap News Agency | 2 April 2018

Moon says revised KORUS FTA will benefit both countries

Seoul: South Korean President Moon Jae-in welcomed the recently concluded negotiations between his country and the United States to revise their bilateral free trade agreement (FTA) Monday, saying it will benefit both countries.

The president also insisted the conclusion of negotiations will aid the local economy by removing uncertainties.

"Removing external uncertainties by concluding negotiations to revise the FTA with the US is a great achievement, especially when trade protectionism is spreading," Moon said while meeting his top aides at his office Cheong Wa Dae.

Seoul and Washington announced successful conclusion of their negotiations on Wednesday. The Korea-US FTA went into effect in March 2012.

Under the revised FTA, South Korean pickup trucks will be subject to 25 percent U.S. import tariffs until 2041 while the number of US cars that do not have to meet local regulations when entering the South Korean market will be doubled to 50,000.

The negotiations to revise the Korea-US FTA came at the request of Washington, which earlier claimed the bilateral free trade pact caused massive trade deficits for the US.

President Moon said the revised agreement will help level out the countries’ trade balances.

Still, he insisted any additional damage to local industries and exporters will be minimized.

"We have successfully minimized the effect on our local industries by winning a (temporary) exemption from U.S. steel tariffs and defending the country’s auto exports and agricultural market while balancing out the countries’ interests," Moon told the weekly meeting, according to Cheong Wa Dae pool reports.

"Now I ask the government to carefully analyze the possible effect the revised FTA will have on Korea-US trade and come up with necessary measures," the president said. "If we thoroughly analyze and prepare necessary measures, we may also create a new opportunity."

The president also insisted the conclusion of FTA negotiations was necessary ahead of South-North Korea and US-North Korea summits aimed at denuclearizing the communist North.

"It was also a great job (to have concluded the negotiations) in the sense that it has sorted out a possible source of conflict while close cooperation between the two countries is critical to resolving the North Korean nuclear issue and the establishment of peace on the Korean Peninsula," he was quoted as saying.

The South Korean president is set to meet North Korean leader Kim Jong-un on April 27 for what would be a third inter-Korean summit.

US President Donald Trump is expected to hold the first-ever U.S.-North Korea summit in May.

Moon also highlighted the importance of relations with other countries, calling his recent visits to Vietnam and the United Arab Emirates (UAE) a great success.

"Vietnam is a key country in our New South Policy and the UAE is our key cooperation partner in the Middle East," the president said, referring to his new foreign policy, which seeks to expand the country’s focus to Asian countries.

Moon made his first state visit to Vietnam on March 22-24, during which he held a bilateral summit with his Vietnamese counterpart, Tran Dai Quang, and talks with other top Vietnamese leaders, including Nguyen Phu Trong, general secretary of the Communist Party of Vietnam, to discuss ways to expand the countries’ bilateral cooperation and exchange.

During his official visit to the UAE, he and Crown Prince of Abu Dhabi Mohammed bin Zayed Al-Nahyan agreed to upgrade the countries’ relationship to a "special strategic partnership."

On Monday, Moon instructed the government to form a special task force to help implement the outcome of his trips to the two countries, including US$25 billion worth of energy development projects promised by the UAE leader.

 source: Yonhap News Agency