The U.S. International Trade Commission (ITC) released a report on the positive effect of Korea-U.S. Free Trade Agreement (FTA) on U.S., June 29 (local time), Korean government officials are taking their breath.
According to the report “Economic Impact of Trade Agreements Implemented Under Trade Authorities Procedure,” the FTA between the U.S. and South Korea brought about a US$4.8 billion to 5.3 billion-ranged increase for the US exports.
The increase is the second largest among those in the 13 FTAs studied, following the North American Free Trade Agreement (NAFTA), which contributed to the increase in the US’s exports by US$ 24.2 billion to US$ 126 billion.
Considering the series of arguments in the current presidential election process, which claim that the FTAs, including that with Korea, is enlarging U.S. trading deficits, the report has a very positive comment for South Korea.
On the day before the report came out. Donald Trump, the republican presidential candidate, claimed that the Korea-U.S. FTA doubled the U.S. trade deficit with South Korea and robbed nearly 100,000 American Jobs,”
Due to such climate, officials in the Ministry of Trade, Industry and Energy, which takes charge of the national trade affairs, had been on standby all night waiting for the release of ITC report. If the report included negative assessment on Korea-U.S. FTA, an emergency press briefing on the next day (July 30) was scheduled to be held.