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South Korea and U.S. begin second round of FTA Renegotiation

By Jennie Oh
South Korean officials hold the second round of talks with US counterparts on the amendment of a bilateral free trade agreement (FTA) in Seoul. Photo Courtesy of Yonhap/UPI.
South Korean officials hold the second round of talks with US counterparts on the amendment of a bilateral free trade agreement (FTA) in Seoul. Photo Courtesy of Yonhap/UPI.

SEOUL, South Korea, Jan. 31 (UPI) -- South Korea and the United States began their second round of talks to revise their bilateral free trade agreement on Wednesday, amid tensions surrounding Washington's decision to slap heavy tariffs on imported washers and solar panels, which include South Korean-made products.

The two-day meeting began in Seoul, headed by Yoo Myung-hee, Director General of Trade Policy at the Trade Ministry and U.S. Assistant Trade Representative Michael Beeman.

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After the first day of talks, Yoo told reporters that Seoul raised the issue of U.S. safeguards during the session and would continue to discuss it on Thursday.

Last week, President Donald Trump signed an executive order imposing tariffs of up to 50 percent on large washing machines over a three-year period and up to 30 percent on solar panels over four years, in a bid to protect domestic companies.

South Korea strongly protested against the "excessive measures" that potentially breach international trade principles.

It called for bilateral talks with Washington in line with the World Trade Organization's provisions.

The WTO stipulates that a member nation imposing a safeguard measure should provide affected nations with sufficient opportunities for consultation.

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Based on WTO rules, Seoul could also request compensation for affected companies or even file a suit against the U.S.

Seoul and Washington officials on Wednesday also touched on key issues of interest regarding the FTA revision.

During first round of talks held earlier this month, Seoul set out to protect its agricultural sector and revise a clause on investor-state dispute settlement which allows investors and companies to sue governments over alleged discriminatory practices. Observers have voiced concern that multinational companies could potentially use the clause to their advantage.

Meanwhile the U.S. expressed an interest in discussing the automobile and auto parts sectors, as South Korean-made cars alone accounted for roughly 73 percent of the country's trade deficit with the U.S. last year, according to the Korea International Trade Association.

South Korea's automobile exports to the U.S. rose 80 percent from 2011 to $18.49 billion in 2015, while its imports of American cars jumped 380 percent.

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