U.S. Congress: Trade Deficit Widens After FTA with S. Korea Takes EffectUpdated: 2012-10-02 00:00:00 (KST)
It seems that Washington is not so happy with the early results of its free trade deal with Seoul.
According to a report by the U.S. Congress' Joint Economic Committee the U.S.' trade deficit with Korea has grown by even a larger margin since the implementation of the FTA from just 600-million dollars in March to a staggering 2-billion dollars in May.
This continues Washington's trade deficit streak with Seoul which has lasted for more than a decade.
Imports from Korea have increased since March, while exports to Seoul have dropped.
The report notes Korea's exports to the U.S. have slipped since the onset of the global financial crisis in 2009 but Washington's outbound shipments to Seoul have tumbled even more.
The committee, however, concludes that "it is still too early to assess the long-run impact of the KORUS FTA," saying that the U.S.' trade deficit with Korea would eventually improve.
In particular, the U.S. expects its food and electronics exports to surge once related tariff reductions kick in.
The report also notes increased exports of these products to Korea and other nations could eventually boost job creation at home.
Song Ji-sun, Arirang News.
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