Trump Considering End to KORUS, White House Says
President Donald Trump may terminate the U.S.-Korea Free Trade Agreement (KORUS), he told The Washington Post in an interview (here). Next week will mark an anniversary for the pact, and will trigger a review period allowing a renegotiation or ratification of a new version of the agreement. Trump told the South Koreans that the U.S. will either “terminate or negotiate,” he said in the interview. Trump referred to the deal as a “one-way street” and a “horrible deal.” The U.S. ran a $27.7 billion trade deficit with South Korea in 2016, according to the Office of the U.S. Trade Representative (here). During a visit to Seoul last week, Vice President Mike Pence noted that the U.S. is reviewing all existing trade agreements (see 1704180002). Trump also mentioned that terminating KORUS can be immediate pursuant to the deal, whereas withdrawing from NAFTA would require six months’ notice.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
A White House spokeswoman confirmed the possibility of a withdrawal from KORUS. "I think that’s entirely in keeping with what the President has said since the beginning of the campaign -- he looks at every trade deal through the lens of whether it is a good deal for the American people and it’s his intention to renegotiate any that is not in their best interests," the spokeswoman said. Trump made waves this week when news surfaced that he was considering leaving NAFTA but later said his administration will seek renegotiation instead (see 1704270007). The South Korean Embassy in Washington didn’t comment.