US and South Korea agree to revise six year-old trade agreement

Vastavam web: The US and South Korea have reached an agreement to revise their six year-old trade pact, a senior administration official said today, describing it a “historic” development and a big political win for President Donald Trump.The agreement has come after Trump recently told reporters while signing a USD 1.3 trillion spending bill that his administration was “very close” to striking a trade deal with South Korea.

The agreement “will significantly strengthen the economic and national security relationships between the United States and South Korea,” the official told reporters.”This agreement is visionary and innovative, and it underscores a pattern of failure by previous administrations to negotiate fair and reciprocal trade deals,” the official said on condition of anonymity.”They will reduce some of the burdensome labelling requirements when it comes to auto parts,” the official said.

South Korea has also agreed to include US pharmaceutical manufacturers in its national health program’s premium reimbursement plan.The United States on the other hand has agreed to indefinitely exempt South Korea from recently imposed 25 per cent and 10 per cent steel and aluminium tariffs respectively.”This is a good deal for both countries and very big deal in the history of US trade negotiations,” the official said.

According to another official, the US maintain 25 per cent tariff on pickup truck.”Several of our free trade agreements have allowed for zero per cent pickup truck tariff, which has resulted in many cases outsourcing a pickup truck production to other countries.The official said it was slated to go to zero per cent by 2021 and has now been extended till 2041.

“That’s a big win for US producers and the workers,” the official said.In addition to having some of the large trade deficit issues that have arisen from an imbalance in the auto trade, there have been persistence, implementation issues, the official added.”At the same time we’re establishing working group to monitor and address these issues when they arise to make sure our exporters are playing on a level playing field. We’re able to take full advantage of the agreement as negotiated,” the official said.

Earlier, White House Press Secretary Sarah Sanders told reporters at her daily news conference that “We have come to an agreement in principle, and we expect to roll out specific details on that very soon”.