April 25, 2024

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[THE INVESTOR] Trade representatives from Seoul and Washington began their first round of negotiation talks on the morning of Aug. 22 during the joint committee special session on the Korea-US Free Trade agreement held at the Lotte Hotel in Seoul. 

Prior to the start of the meeting Korea’s newly elected chief trade negotiator Kim Hyun-chong told reporters that he would be “negotiating with confidence.” 

Korea’s chief trade negotiator Kim Hyun-chong (right) and US Trade Representative Robert Lighthizer (left) speak via videoconference during the special joint committee meeting on the Korea-US Free Trade Agreement at the Lotte Hotel in Seoul on Aug. 22. Ministry of Trade, Industry and Energy.

According to the Ministry of Trade, Industry and Energy, Kim and US Trade Representative Robert Lighthizer, who was unable to attend the meeting, first spoke via video conference, exchanging both parties’ positions regarding the current terms of the FTA. 

“I made our position very clear,” Kim briefly said to reporters following his 30-minute videoconference with Lighthizer. 

“It is not easy to predict the first round of negotiations,“ he added without any further comment. 

Following the conclusion of the videoconference between the two trade chiefs, additional senior-level discussions were held between Korean and US officials. The session was attended by representatives of the Trade Ministry, as well as USTR Chief of Staff Jamieson Greer and Michael Beeman, assistant US trade representative for Japan, Korea and APEC. 

Although trade representatives from Seoul and Washington have met every year since the establishment of the Korea-US FTA five years ago, Tuesday’s meeting came more than a month after the USTR sent Korea an official request to hold a joint session to discuss matters regarding the FTA, including opening dialogue for what Lighthizer referred to as “possible amendments and modifications” and to address the “significant trade imbalance.”

The first round of meetings has drawn wide speculation that  joint committee on Aug. 22 was the start of Korea and the US entering into an intense FTA showdown, given US President Donald Trump’s multiple public denouncements of KORUS and vowing to amend the trade deal. 

However, during a meeting with the members of the Ministry of SMEs and Startups on Aug. 22, Trade Minister Kim reiterated that the special session does not represent the beginning of any FTA renegotiation procedures. 

While President Trump blames the KORUS FTA for causing the US’ deepening $27.6 billion trade deficit, the Korean government continues to maintain its stance that the trade deal has mutually benefited both parties since its induction.

“I think it’s better that we maintain the agreement because it‘s a win-win,” said Kim during his meeting with the Ministry of SMEs. 

The  joint committee meeting on Aug. 22 was the first test of aggressive negotiation tactics for newly appointed chief trade negotiator who took office on Aug. 4. As a trade expert, Kim led negotiations on the KORUS FTA nearly a decade ago. 

While Tami Overby, senior vice president for Asia at the US Chamber of Commerce, and a strong supporter of the KORUS FTA, has referred to Kim as “one of the smartest trade negotiators alive,” the trade negotiator has drawn some criticism from the local business community for his alleged pro-business attitude and pro-US stance taken during initial FTA negotiations with the US. 

In his inauguration speech earlier this month, Kim emphasized that he would take an aggressive stance, rather than a defensive approach, when it comes to all trade negotiations. 

By Julie Jackson/The Korea Herald (juliejackson@heraldcorp.com)