US auto access to South Korean markets important in upcoming negotiations

Thursday, 29 June 2017 22:56:56 (GMT+3)   |   San Diego
       

President Donald Trump plans to address trade, especially in auto and steel, with the new South Korean President Moon Jae-In in meetings this week.  Trump is requesting that South Korea reduce barriers with regard to US auto exports to the country; he has also expressed concern with regard to the the trade imbalance with South Korea in addition to the pass-through of Chinese origin steel. South Korea is the second largest foreign supplier of steel to the US, after Canada.

The US ran a $27.6 billion trade deficit with South Korea in 2016, according to Census Bureau data on trade in goods. South Korea only imported $1.6 billion in US autos while it exported $16.1 billion in autos to the US that year.

US automakers have limited access to the South Korea market. Former President Barack Obama renegotiated the Korus free trade agreement with South Korea with hopes of better terms for US auto manufacturers. Trump has elevated the importance of auto industry access and has threatened to dissolve the agreement if better terms are not possible.


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