US Trade Deal with South Korea Falling Short: VP Pence

The U.S. trade relationship with South Korea is “falling short,” with the free-trade deal between the countries under review, Vice President Mike Pence said today.“We’ll pursue trade that is both free and fair,” Pence said during remarks at a U.S. business chamber gathering in Seoul. “And that’ll be true in all our trade relationships, including KORUS,” he said, a reference to the U.S.-South Korea deal. “We’re reviewing all our trade agreements across the world to ensure they benefit our economy as much as they benefit our trading partners,” Pence said. “We have to be honest about where our trade relationship is falling short. Most concerning is the fact that the U.S. trade deficit with South Korea has more than doubled since KORUS has come into effect.”During Pence’s comments in Seoul (he is now in Japan), he called the trade gap with South Korea a "hard truth,” with "too many" barriers to entry for U.S. businesses. South Korea, the U.S.’s sixth-largest trading partner, avoided being tagged a currency manipulator by the U.S. Treasury, though it remains on a watch list of nations deemed at risk of engaging in unfair conduct. The U.S. has not named any country a manipulator since 1994."Our businesses continue to face too many barriers to entry, which tilts the playing field against American workers," Pence said at an event with about 100 U.S. and Korean business representatives, according to a pool report. He added the countries need to "level that playing field," saying "we will work with you" as we "reform KORUS in the days ahead." In a tweet, Pence added: "Most concerning is the fact that the [U.S.'s] trade deficit with South Korea has more than doubled since KORUS came into effect."Pence also praised South Korea's level of foreign direct investment in the U.S. as well as the scale of U.S. services exports to the country, the pool report said