In the letter, Senator Ernst highlighted the importance of this trade deal to both the USA and Korea, stating that “with over $144 billion in goods and services moving between us in 2016”. The statement by House Ways and Means Committee chairman Kevin Brady, senior Democrat Richard Neal, Senate Finance Committee chairman Orrin Hatch and senior Democrat Ron Wyden said talks to improve Seoul’s implementation and compliance with the trade deal were welcome, but that the pact was central to the US-South Korean alliance.
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The South Korean trade agreement was first signed under the George W. Bush administration in 2007, then renegotiated under President Barack Obama in 2010.
According to reports, Trump has instructed his advisers to prepare documents that would provide a six-month notice for the U.S.to withdraw from the deal-a move that in itself is expected to stoke tensions, and it comes just as North Korea tested a hydrogen bomb as part of its nuclear weapons program. Most of Korea’s soybean imports, however, come from our competitors in Brazil and Argentina. “Trade agreements are important because they provide producers with reliable markets to sell their products, which allows them to provide for their families”. Most of Korea’s soybean imports, however, come from US competitors in Brazil and Argentina.
“We believe it would be irresponsible to unilaterally walk away from this or any other trade agreement”, said Mike Miller, U.S. Wheat Associates chairman and a wheat grower from Ritzville, Washington.
South Korea walked away from talks with the United States on updating the deal on August 21, saying it needs further “investigation, analysis and evaluation” before making any decision.
“We support finding ways to improve any agreement, but let’s do that in a reasoned and respectful way, with input from all stakeholders so USA wheat farmers can gain greater access to world markets”, Schemm said in the press release. It certainly provides evidence that the US was wise to secure the largest share of the South Korean market.
The administration has been in talks to make adjustments to the trade agreement known as KORUS. This work has helped spur dynamic growth in the South Korean livestock and feed grains sectors and made it one of the largest and most loyal customers of USA grain.
With no free trade agreement with South Korea in place, all duty savings would be eliminated.
USA trade in goods and services with South Korea totaled about $145 billion a year ago.
Bolten pointed to the USA economy as a reason against withdrawing.