The U.S. Trade Representative’s Office said Friday that South Korea was in “non-compliance” with its obligations under its revised trade agreement and demanded its first-ever consultations under the deal. The administration has regularly touted the U.S.-Korea Free Trade Agreement, also known as KORUS, updated last year, as proof that the administration’s aggressive policies work.
The USTR requested the consultations because it claims that the Korea Fair Trade Commission, the body that hears complaints from foreign businesses, has “denied U.S. parties certain rights.” The announcement did not specify the companies but said that they were “denied the opportunity to review and rebut the evidence against them” in trade disputes.
An administration official with knowledge of the matter said the request involved a number of U.S. information technology firms who have been involved in cases with Korea in recent years.
“Following extensive efforts to resolve this concern, USTR is requesting consultations at this time because recently drafted amendments to Korea’s ‘Monopoly Regulations and Fair Trade Act’ fail to address U.S. concerns that KFTC hearings continue to deny U.S. firms due process rights under the KORUS agreement that are necessary to secure a fair competition hearing in Korea,” the office said.
The U.S.-Korea deal is an updated version of a trade agreement first stuck during the George W. Bush administration. President Trump negotiated an updated version last year and has touted it as one of his successes in trade policy.
“South Korea, we just finished. It’s a good deal. Made it a good deal. It was a terrible deal, and we made it into a good deal,” the president said during a White House meeting with members of Congress in January.
