SEOUL– South Korea’s trade chief said Monday it’s time for Seoul and Washington to strengthen their economic partnership for the next 10 years based on their free trade agreement signed a decade ago.
In a seminar held in Washington, D.C. on March 14, Trade Minister Yeo Han-koo said the Korea-U.S. free trade pact (KORUS FTA) was a “game changer” that transformed their economic partnership into a “fair and strategic” one.
He compared the bilateral trade pact to a “booster shot” amid the COVID-19 pandemic, which is essential for their companies’ trade and investments.
Since the KORUS FTA came into force in March 2012, trade volume of goods between the two nations has grown nearly 70 percent and bilateral investment more than doubled, according to government data.
The bilateral trade of goods stood at US$169.1 billion last year, up from $100.8 billion logged in 2011.
South Korea’s investments in the U.S. jumped from around $7 billion in 2012 to $18.2 billion in 2020, and the U.S.’ investment in Korea rose to $5.3 billion from $3.67 billion during the same period.
The Federation of Korean Industries (FKI), South Korea’s leading business lobby group, said open competition, fair play and mutual win-win formed the spirit of the KORUS FTA, a role model for the world amid the spreading protectionism.
“The two countries will join hands with each other to resolve global supply chain disruptions, to cooperate in quarantine measures, and to respond to future trade issues,” FKI Chairman Huh Chang-soo said at an event in Seoul for the pact’s 10th anniversary.
U.S. Embassy Charge d’Affaires Christopher Del Corso said the U.S. also put a focus on establishing an inclusive and consistent partnership with South Korea in the next 10 years.
As for the partnership for the next decade, Yeo expressed interest in the U.S.-proposed Indo-Pacific Economic Framework (IPEF).
In January, he said the IPEF may provide common goods by setting rules and standards, especially for newly emerging industries, such as digitalization, but insisted many countries would want increased market access in return for taking part in such an initiative.
He said South Korea is in close talks with the U.S. over the IPEF issues.
Source: Yonhap News Agency