US wins S. Korea’s agreement to amend free-trade deal

SEOULThe US has won South Korea’s agreement to amend their trade deal, overcoming previous reluctance to change the ve-year-old pact, which the US blames for increasing its trade de cit.

South Korea plans to start the necessary process for amendment, the nation’s trade ministry said in a statement after the second round of talks concluded in Washington. US Trade Representative Robert Lighthizer said he will work to “resolve outstanding implementation issues as well as to engage soon on amendments that will lead to fair, reciprocal trade”.

No announcement was made regarding how the deal might be amended. The first set of talks ended in stalemate in August, with the US calling for revisions to the agreement and the South Koreans balking and instead proposing a study on its economic impact.

The trade friction comes as the military allies try to find ways to increase strategic cooperation in response to an increasingly aggressive North Korea. US President Donald Trump has threatened to withdraw from the deal, known as Korus, if South Korea doesn’t agree to terms that would reduce America’s growing trade deficit with the country, though he hasn’t made any concrete proposals.

This push to alter the deal comes at a difficult time for Seoul. Relations with its largest export market, China, have soured over the decision to allow the US to deploy a missile shield south of Seoul. — Bloomberg