Korea’s trade surplus with U.S. decreases nearly 7%Korea’s trade surplus with the United States has decreased nearly 7 percent since the two countries kicked off a revised free trade agreement (FTA) earlier this year, data showed Sunday.
Asia’s No. 4 economy’s trade surplus with the U.S. reached $10 billion over the January-October period, down 6.8 percent from last year, according to the data from the Ministry of Trade, Industry and Energy.
The revised FTA went into effect on Jan. 1 to reflect Washington’s demands in the auto sector. The original agreement kicked off in 2012.
Under the new deal, Washington was able to extend a tariff of 25 percent on Korean pickup trucks by another 20 years to 2041. Korea also doubled the 25,000-vehicle unit threshold for U.S. car imports that do not have to comply with domestic industry regulations.
Experts, however, said the decrease in the trade surplus from exchanges with the world’s top economy does not necessarily mean the revised FTA had an adverse impact.
Korea’s exports to the U.S. increased 2.2 percent to $60.7 billion over the cited period, and imports also moved up 4.1 percent to $50.7 billion, the data also showed.
The country’s overall exports, on the other hand, decreased 10.3 percent over the period.
More in Economy
Trade Minister says WTO needs to be reformed
Current account surplus hits an eight-month high in June
New Deal Fund is so good it might end up as a Ponzi scheme
23rd property measure gets a 'not-in-my-backyard' welcome
All about the Benjamins