President Trump said time and again during his campaign and after taking office... that
he thinks America's FTA with Korea is a disaster... and that he wants a better deal.
If Seoul and Washington go back to the drawing board on the deal,... a likely target will
be Korea's steel and auto industries.
Our Oh Soo-young explains.
During President Moon Jae-in's state visit to Washington last week,...
President Trump pushed for a renegotiation of the five-year-old free trade agreement
between the two nations.
"We will do more to remove barriers to reciprocal trade and market actions."
Trump emphasised auto and steel trade as "tough issues".
He said Korea must provide American carmakers a "fair shake" to sell their cars in the Korean
market,... having argued in the past that they're hindered by non-tariff barriers.
Last year, Korea's outbound shipments of automobiles to the U.S. amounted to 15-point-four billion
U.S. dollars which is nine times the amount... that U.S. automakers export to Korea.
However,... the trade difference has narrowed considerably since the FTA went into effect.
Korea's car exports to the U.S. dropped almost 10 percent, while U.S. cars bound for Korea
grew by 22 percent over the five-year period.
Also, U.S. automakers enjoy looser regulations in Korea, compared to the EU and Japanese
markets.
Experts say the reason why American cars have sold less in the Korean market is more likely
due to consumer preferences, that lean toward Japanese and European brands.
Another key issue is steel.
The Trump administration has been taking various trade measures against the flooding of cheap
Chinese steel components in the U.S. market,... which is indirectly supplied through other
countries.
While Korea is the second largest supplier of U.S. steel imports,... only two percent
of the amount contain steel made in China... which makes it a stretch to pin the blame
on Korea.
"Trade restrictions on Korean steel will only disadvantage American consumers in the end
as prices will be driven up if imports are capped."
If the FTA does go back to the drawing board,... experts say Seoul must emphasise the sizeable
benefits the deal has brought to the U.S.. which it could now lose out on.
These include tens of thousands of American jobs generated by Korean companies as well
as investment in production facilities.
Oh Soo-young, Arirang News.
Không có nhận xét nào:
Đăng nhận xét