Idea for FTA Maintenance?

From left is David Ruch, former head of the AMCHAM, James Kim, chairman of the AMCHAM and CEO of GM Korea, and Jeffrey Jones, former chairman of the AMCHAM, who attended at a joint news conference in Seoul on June 14.
From left is David Ruch, former head of the AMCHAM, James Kim, chairman of the AMCHAM and CEO of GM Korea, and Jeffrey Jones, former chairman of the AMCHAM, who attended at a joint news conference in Seoul on June 14.

 

The American Chamber of Commerce in Korea (AMCHAM) floated the idea that President Moon Jae-in announce a $10 billion (11.2 trillion won) "Buy American Fund" in a joint statement with US President Donald Trump during his visit to the United States to ease pressure for a renegotiation of the Korea-U.S. Free Trade Agreement (KORUS FTA).

“If President Moon suggests that Korea will create a US$10 billion Buy America Fund, President Trump will love it, tweet about it and he will think of President Moon as his friend," said Jeffrey Jones, former chairman of the American Chamber of Commerce in South Korea, at a press conference in Seoul on June 13. Moon is scheduled to hold his first summit with Trump in Washington from June 28 to July 2.

The proposal came from a result of Jones’ meetings with personnel from such as the White House, the National Trade Council under the US Department of State, the Commerce Department, the US Trade Representative and the Congress. He made a trip recently to the United States along with other American and South Korean business leaders including Hyundai Motor Group to talk on trade issues facing the two countries with US officials and policymakers in the annual "door-knock" meetings.

"This year's door-knock was especially important as it was our first visit to Washington since the election of new leaders in both countries," AMCHAM Chairman and GM Korea CEO James Kim said, adding, “It produced a unique perspective regarding the Korea-US trade relationship to have Hyundai Motor join this year's door-knock.”

"We introduced economic values that Hyundai Motor has created in the US with factual evidence to help them understand the KORUS FTA is mutually beneficial," Jones said, adding, "Hyundai Motor, which operates production plants in Alabama and Georgia, employs more than 10,000 workers. Taking its subcontractors into account, Hyundai Motor's presence in the US has created about 100,000 jobs while improving local communities. And the response has been positive from the administration and Congress."

The KORUS FTA free trade deal, which went into effect in 2012, has widely been considered a symbol of the economic alliance between the two countries. 

"We really believe that KORUS has been very helpful to both countries," James Kim, chairman of the AMCHAM CEO of GM Korea, said at the press conference, adding, “US officials are divided over the KORUS FTA, noting many of them are quite opposed to the free trade deal though a lot of them maintain positive views.”

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