[author: Barbara Medrado]
United States Trade Representative (USTR) Robert Lighthizer formally notified Korea in July that the U.S. is calling a special Joint Committee meeting under the U.S.-Korea Free Trade Agreement (KORUS) to start the process of negotiating to remove barriers to U.S. trade and consider amendments to the agreement. USTR’s action is consistent with the Trump Administration’s stated objective of reducing the trade deficit. KORUS entered into force in March 2002 and, from 2011 to 2016, the U.S. trade deficit in goods with Korea more than doubled from $13.2 billion to $27.6 billion.
The Joint Committee, established under Article 22.2 of KORUS, supervises the implementation of the Agreement and the work of the various committees and bodies created by the Agreement. The Joint Committee also seeks to resolve disputes concerning the interpretation and application of KORUS, and to enhance trade relations between the United States and Korea. The Joint Committee may consider amendments to KORUS or make modifications to the commitments therein and issue interpretations of KORUS rules. The Joint Committee is co-chaired by USTR and the Minister of Trade of the Republic of Korea, or their respective designees.
USTR’s request sparked a bipartisan response from several top U.S. legislators dealing with trade issues, including Senators Orrin Hatch (R-UT) (Senate Finance Committee chairman) and Ron Wyden (D-OR) (Senate Finance Committee ranking member), along with Kevin Brady (R-TX) (House Ways and Means Committee chairman) and Richard Neal (D-MA) (House Ways and Means Committee ranking member), who submitted a joint letter to Ambassador Lighthizer.
The four legislators recognized the prospect of improving the trade relationship with Korea, but their letter included a request that USTR “consult closely” with Congress, noting that doing so would be in line with both legal obligations and past precedent, along with allowing Washington to present a “united front” to its trading partners. The letter also noted that any change affecting the U.S. resulting from the work of the Joint Committee cannot take effect unless either the President exercises authorities delegated to him by Congress or, alternatively, Congress makes changes to U.S. statutes.
According to Korean news reports, the newly appointed Minister of Trade, Industry and Energy, Paik Un-gyu, indicated support for the United States’ request to convene a Joint Committee under KORUS in order to discuss how to objectively analyze and assess the effects of the treaty. Minister Paik requested that the U.S. allow Korea some latitude, however, during the transitional phase of the new Moon administration’s government, which would make it difficult for Korea to meet the United States’ proposed one-month timeframe. In addition to allowing for a revised timeline and agenda, Minister Paik also suggested that the meeting be held in Seoul, instead of Washington, D.C.
