Opposition from US
U.S. Grains Council (USGC) Chairman Chip Councell said in a recent interview that South Korea is a reliable partner for the agricultural industry of the United States and the KORUS FTA has been reciprocal for American farmers and agricultural enterprises since its beginning.
His remark is the first response from the American industry since United States Trade Representative (USTR) Ambassador Robert Lighthizer proposed a special committee meeting on July 12 with regard to KORUS FTA renegotiation.
According to the USGC Chairman, South Korea is the fifth-largest export destination for American agricultural products. Since the KORUS FTA was implemented in March 2012, a zero-tariff quota has been applied to up to 115,000 bushels of grains exported from the U.S. to South Korea.
In the meantime, U.S. Chamber of Commerce Executive Vice President Myron Brilliant pointed out on June 27 that a cancellation of the KORUS FTA will be a mistake. According to the Ministry of Trade, Industry & Energy of South Korea, the KORUS FTA has resulted in a reduction of tariffs worth US$2.1 billion on the part of the United States and US$1.2 billion on the part of South Korea and a cancellation of the agreement is likely to lead to a greater burden on the former.