Monday afternoon in New York, President Trump fulfilled
another one of his promises to the American people.
In a ceremony with South Korean President Moon Jae-in,
President Trump signed a revised U.S.-Korea free trade agreement (KORUS), which
has significant wins for American workers and businesses.
This is just the latest in President
Trump’s ongoing effort to deliver more secure, free, fair,
and reciprocal trade deals for the American people.
USTR Fact Sheet:
Remarks:
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IMPROVING BAD TRADE DEALS: President Trump has fulfilled his promise to fight for American workers and businesses in an amended trade deal with South Korea.
- In
July 2017, at the direction of the President, United States Trade
Representative (USTR) Robert Lighthizer initiated discussions to amend the
United States–Korea Free Trade Agreement (KORUS), setting off multiple
rounds of negotiations.
- Since
KORUS went into effect in 2012, USTR calculated that the overall trade deficit
between the United States and Korea has increased from $6.3 billion to
$9.8 billion in 2017, a jump of more than 50 percent.
LEVELING THE PLAYING FIELD: The Trump Administration has secured key improvements to KORUS that will protect jobs in America’s auto industry and increase United States exports
.
- As
a result of negotiations, South Korea will double the annual number of
American automobiles – from 25,000 to 50,000 per manufacturer per year –
that can enter its market using United States safety standards without
further modifications.
- South
Korea is simplifying the sales environment for United States cars and
parts by taking into account United States environmental and emissions
standards.
- American
vehicles will be able to meet South Korean gasoline emissions standards
based on compliance with United States emissions regulations, avoiding
additional or duplicative testing.
- South
Korea will recognize United States standards for auto parts necessary to
service United States vehicles, and will reduce labeling burdens for auto
parts.
- South
Korea will expand the number of “eco-credits” available for United States
automakers to meet South Korean emissions standards.
- When
setting fuel economy standards in the future, South Korea will take United
States corporate average fuel economy regulations into account and will
continue to include more lenient standards for smaller volume exporters.
- The
phase out of the 25 percent United States tariff on trucks will be
extended until 2041, well beyond the current phase out date of 2021.
CUTTING RED TAPE ON EXPORTS AND HOLDING TRADE PARTNERS ACCOUNTABLE: The Trump Administration’s negotiations will eliminate burdensome regulations that have impeded United States exports and ensure that trade partners follow through on implementation.
- South
Korea has agreed to address issues with onerous and costly customs
procedures that have hindered United States exports.
- South
Korea has agreed to change its pharmaceutical reimbursement policy for
innovative drugs to give fair treatment to United States exports by the
end of this year, consistent with its KORUS obligations.
DEFENDING AMERICAN STEEL: Outside the context of KORUS, the Trump Administration has reached a deal with South Korea to protect American steel manufacturers and national security.
- On
March 8, 2018, after receiving a report and recommendations from Secretary
of Commerce Wilbur Ross, President Trump announced tariffs on imported
steel under Section 232 of the Trade Expansion Act of 1962, as amended, in
order to defend America’s national security.
- The
Trump Administration has reached satisfactory alternative means with South
Korea to address United States national-security concerns.
- Steel
imports from South Korea into the United States will be limited to a
product-specific quota equal to 70 percent of that country’s average
annual import volume from 2015 through 2017.
ADDRESSING UNFAIR CURRENCY PRACTICES: The Trump Administration is working to ensure that American goods are treated fairly and that our trading partners avoid unfair currency practices.
- Outside
the context of KORUS, the Treasury Department has an understanding with
South Korea to avoid competitive devaluation and practices that provide an
unfair competitive advantage.
- The
understanding includes strong commitments on exchange rate practices,
robust transparency, and reporting.
