[Exclusive Interview] Is the 'Trump Round' Gaining Speed..."KORUS FTA Will Be Amended"

Jeffrey Schott, Senior Fellow at the International Economics Institute (IIE), stated in a written interview with our newspaper on the 10th, "The new US policy (tariffs) is violating the KORUS FTA," and "Both countries are likely preparing to amend and update the existing obligations of the KORUS FTA." Schott, who has been active at the Peterson Institute since 1983, is a trade expert researching international trade policy and economic sanctions, and has served as a senior advisor at the US Treasury's Office of International Trade and the Carnegie Endowment for International Peace.
The direction of the amendment is likely to focus on the reorganization of US trade priorities and the coordination of strategies to check China. This is because the core policy of US President Donald Trump is based on 'America First', which prioritizes US national interests. Schott explained, "The two countries will amend the FTA to further strengthen trade and investment." However, he noted, "It should be noted that this does not mean nullifying the agreement," drawing a line against the theory of nullifying the KORUS FTA. The FTA was concluded in 2007 to liberalize trade and investment between the two countries and increase mutual economic benefits.
The reason the US is trying to protect the FTA by amending provisions is analyzed to be because it can be actively used to check China and expand allies.
The possibility of linkage with the CPTPP is also not unrelated to this. From the US perspective, which withdrew from the CPTPP, it is an opportunity to expand influence and increase allies. The CPTPP is a multilateral free trade agreement involving 11 countries in the Pacific Rim region. After the US withdrew from the TPP, the remaining countries maintained the existing contents and created a new one. Schott stated, "Strengthening relationships with CPTPP member countries in supply chains and other areas will play an important role in complementing the (bilateral agreement) KORUS FTA," and "Especially if the European Union (EU) expands discussions related to the CPTPP and applies for membership, its importance could grow even further."
The industry predicts that these movements will accelerate the Trump Round. In this regard, Jamieson Greer, the US Trade Representative (USTR) overseeing US trade policy, stated on the 7th (local time) that the Trump administration's tariffs and other trade policies are defined as a new order to replace the existing World Trade Organization (WTO) system. Greer stated, "The Trump administration is trying to reform the world trade order that has only worked unfavorably for the US, such as the Uruguay Round that led to the establishment of the WTO," and "We are witnessing the Trump Round."
Attention is also being paid to the impact that the upcoming USMCA renegotiation, scheduled for a few months from now, will have on the amendment of the KORUS FTA. The USMCA is a free trade agreement between the US, Mexico, and Canada that was amended to replace the North American Free Trade Agreement (NAFTA). Although the USMCA renegotiation was originally set for next year, it is reported that it is gaining momentum due to Trump's demand for an early renegotiation.
The industry believes that the negotiation contents discussed in the USMCA, such as strengthening trade norms with allied countries, could be partially applied to the amendment of the KORUS FTA. Schott predicted, "New policies such as US tariffs will be subject to extensive discussion during the USMCA review process." kjh0109@fnnews.com Kwon Jun-ho Reporter