Ways and Means Chairman 'Surprised' by Talk of KORUS Renegotiation
House Ways and Means Chairman Kevin Brady, R-Texas, said he’s “a little surprised” by President Donald Trump’s June 30 statement that the U.S. and South Korea are considering renegotiations of the two countries' free trade agreement, especially “when there is such urgency for us to address America's absence in the larger Asia-Pacific region.” Trump recently said such discussions came up during a meeting with South Korean President Moon Jae-in (see 1706300027). Under Trade Promotion Authority (TPA), the executive branch must meet with Ways and Means, Finance, as well as the House and Senate advisory groups on negotiations, before submitting formal notice of intent for trade negotiations at least 90 days prior to direct talks beginning.
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While KORUS has been successful for the U.S., it can be improved to provide more economic benefits for U.S. companies and workers, Brady said in an emailed statement. “Throughout this process, it’s essential that Trade Promotion Authority requirements be followed,” he said. “This means that the Administration must comply with the letter and the spirit of the robust and rigorous consultation requirements with Congress as set forth in TPA before, during, and after any renegotiation.”
White House Principal Deputy Press Secretary Sarah Huckabee Sanders on June 30 said (here) U.S. Trade Representative Robert Lighthizer will call a "joint special committee meeting" to start the process of renegotiating and amending KORUS, but didn't specify what that would entail. "As we've said many times before, the President is committed to making sure he gets the best deal and a better deal if possible when it comes to trade," she said. "And that's the current status of where they are." The Office of the U.S. Trade Representative, the Senate Finance Committee and the South Korean Embassy in Washington didn’t comment.
Meanwhile, a Korea Times article (here) quoted a South Korean official saying the country has received no "requests from the U.S. regarding the FTA." The official added: "We are preparing for all possible scenarios, but we cannot take any pre-emptive steps as there has been no official action from the U.S." The official also noted that Trump's remark on renegotiation wasn't mentioned in the joint statement (here) from his meeting with Moon in Washington last week. U.S. and South Korean officials committed to work together to reduce non-tariff barriers to trade and global overcapacity in materials including steel, according to the joint statement. They also agreed to foster "expanded and balanced trade" with "reciprocal benefits and fair treatment," the statement says.