Trump Preparing to Scrap Korea-US FTA

Jerome Frank
September 4, 2017

The latest gambit by Trump, who has called the FTA that went into effect in 2012 a "horrible" deal despite enthusiastic Republican support for it, came a day after he spoke over the telephone with President Moon Jae-in.

On Sunday, North Korea tested what it said was a hydrogen bomb.

President Donald Trump hinted yesterday he may pull out of the country's 5-year old free trade agreement with South Korea, saying he would discuss the fate of the pact with his advisors this coming week.

Trump was speaking with reporters while on a trip to hurricane-hit Houston.

If the Trump Administration decides to withdraw from deal, the President may look to South Korea to import more USA products without restrictions; something he believes will help US businesses and workers.

"It is very much on my mind", Trump said in Houston when asked whether he would be talking about the accord next week.

The Washington Post reported earlier on Saturday that Mr Trump had ordered his advisers to prepare plans to withdraw from the pact, and that the formal process to leave could start as soon as this week.

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As Trump considers giving notice to South Korea of USA withdrawal from the pact, he faces a potential divide among his advisers.

South Korean and USA officials began talks about possible revisions to the agreement on August 22 but failed to agree on how to move forward.

An initial meeting generated little consensus, with South Korean officials offering to consider minor adjustments to the agreement, but rejecting a wholesale renegotiation - angering hardliners in the White House who have targeted countries such as China, Japan, Mexico and South Korea that have large trade surpluses with the US.

Alabama exports millions of dollars in goods to, and imports millions worth of good from, South Korea...primarily because the only Hyundai plant in the U.S.is in Montgomery.

Pulling out of KORUS would mark the latest step taken by Trump to abandon the type of global trade agreement that had exemplified world economics for decades.

Trump criticized the agreement past year on the campaign trail, calling it "a bad" deal that hurts US industries and workers.

Other reports by Guamnewswatch

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