Posted on 09/25/2018 9:54:19 AM PDT by 2ndDivisionVet
President Donald Trump has signed the first trade deal of his presidency: a revamped version of the six-year-old KORUS agreement with South Korea.
“From day one, I promised the American people that I would renegotiate our trade deals to ensure that our agreements were fair and reciprocal,” said Trump after the signing. “The new U.S.-Korea agreement includes significant improvements to reduce our trade deficit and to expand opportunities to export American products to South Korea. In other words, we are now going to start sending products to South Korea.”
As with many other countries, Trump had been incensed at the fact that South Korea sells more to U.S. consumers than it buys from American exporters—the U.S. trade deficit in goods was $22.9 billion last year, though as the U.S. exports many services to South Korea, the overall deficit was just $10.7 billion.
So what is in the revamped KORUS that makes it a better deal for the U.S.?
The big focus is on cars, a strong point for the Korean economy. Under the new deal, each American auto exporter will get to send 50,000 vehicles annually to South Korea that meet U.S. safety standards, rather than Korean safety standards....
(Excerpt) Read more at fortune.com ...
Of course the banks in Korea won’t lend for a US car. Gotcha again.
They had to ban all BMW imports because they were catching on fire and destroying buildings constantly.
just as Europe refused American Grain exports because their GMO industry was 10-12 years behind the USA's in late 1999, now all Europeans eat only GMO grains from France and Germany.
Basically they made a trade not having to cover a lot of the 25% tariff going into effect for the cut back of selling their steel here. It was Trump’s way of getting the US steel companies to make our own and promote employment and inside country business. Good for the economy.
rwood
It will likely take a few years. Creating / expanding new markets can take time.
A big question is, can US auto mfgrs. sell more vehicles in SK now that SK has eased import regs? The old quotas were never approached due to US vehicles having to meet SK standards - now they are allowed if they meet US rules...
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