Top US business group in S. Korea backs FTA

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A trade deal between Washington and Seoul -- slammed by US President Donald Trump -- gained more support on Tuesday as The American Chamber of Commerce in Korea (AMCHAM) warned of a “damaging effect” on the economy if it is abandoned.

Trump has slammed the five-year-old US-S. Korea free trade agreement, known as KORUS FTA, as a "horrible deal" and a "job killer," and said he would discuss the possible withdrawal from it with his aides this week.

Tensions are high following DPRK's sixth nuclear test and a series of missile launches, and his comments sparked concerns about the decades-old alliance between Seoul and Washington.

AMCHAM -- the biggest foreign business group in S. Korea -- which serves about 700 businesses in the country, warned withdrawing from the pact will have a "severe damaging effect on the economy" and lead to a "deterioration" of ties.

The trade deal has had a "positive influence" on both economies and most of its members had seen "noteworthy benefits," it said, making clear: "The American Chamber of Commerce in Korea supports the ongoing implementation of the KORUS FTA."

Now it is the time to further solidify the US-S. Korea alliance given the continued provocation from DPRK, the chamber of commerce added.

Trump's push to revise the deal is part of his wider drive to cut his nation's trade deficits with a number of countries including S. Korea, a key Asian ally.

The US is South Korea's second-biggest trading partner after China.

The US trade deficit with South Korea has more than doubled since the pact took effect in 2012, from 13.2 billion US dollars in 2011 to 27.6 billion dollars last year, according to US data.

AMCHAM said US exports rose more than 20 percent in the first half of this year, adding: "It appears that the trade deficit is declining."

Source(s): AFP