US and Korea Agree to New Free Trade Agreement

I would not be surprised that the price for South Korea to get President Trump on board with a possible 2nd Kim-Trump Summit was to agree to change the US-ROK FTA.  Usually when it comes to changes in the FTA there is a lot of pushback from the ROK where this went pretty smooth:

South Korean President Moon Jae-in and U.S. President Donald Trump welcomed the conclusion of negotiations to amend the countries’ bilateral free trade agreement (FTA) on Monday, vowing efforts to implement it swiftly.

“We, the Presidents of the Republic of Korea and the United States of America, hereby reaffirm our close alliance and the importance of maintaining strong, mutually beneficial trade and economic ties between our peoples,” the leaders said in a joint statement issued at the end of their bilateral summit in New York.

“We welcome the successful conclusion of negotiations between our governments that have resulted in amendments and modifications to improve the Korea-United States Free Trade Agreement,” they added.

Under the revised FTA, the U.S. will extend a 25 percent tariff on imports of South Korean pickup trucks by 20 years to 2041, while Seoul will double the number of U.S. cars not subject to its local industry regulations to 50,000.

“South Korea will double the number of American cars sold …(to) 50,000 per manufacturer of cars,” Trump said in a joint press conference.

The changes, which come at a U.S. request, were approved by the South Korean Cabinet last week. The revised FTA was signed Monday by the countries’ trade ministers. It still needs to be ratified by the countries’ legislatures.  [Korea Times]

You can read more at the link.