Wendy Cutler on Advancing the U.S.-Korea Economic Relationship | Asia Society Skip to main content

Unsupported Browser Detected.
It seems the web browser you're using doesn't support some of the features of this site. For the best experience, we recommend using a modern browser that supports the features of this website. We recommend Google Chrome, Mozilla Firefox, or Microsoft Edge

  • Back to asiasociety.org
  • Center for China Analysis
    • About
    • Research Pillars
    • Fellows
  • Topics
    • Prosperity
    • Security
    • Sustainability
  • Countries & Regions
    • Australia
    • Central Asia
    • East Asia
    • Oceania
    • South Asia
    • Southeast Asia
    • West Asia
  • Publications
    • All Publications
    • ASPI Notes
  • Initiatives
  • Watch & Listen
    • Video
    • Podcasts
  • Events
    • AsiaX
    • Past Events
  • About
    • Mission
    • How We Work
    • Institutional Independence
    • Staff
    • Fellows and Advisors
    • Network of Experts
    • Supporters
    • News
    • Contact
    • Careers
    • Schwartz Book Award
    • Join Our Email List
  • Support Us
Search
Asia Society Policy Institute
  • Center for China Analysis
    • About
    • Research Pillars
    • Fellows
  • Topics
    • Prosperity
    • Security
    • Sustainability
  • Countries & Regions
    • Australia
    • Central Asia
    • East Asia
    • Oceania
    • South Asia
    • Southeast Asia
    • West Asia
  • Publications
    • All Publications
    • ASPI Notes
  • Initiatives
  • Watch & Listen
    • Video
    • Podcasts
  • Events
    • AsiaX
    • Past Events
  • About
    • Mission
    • How We Work
    • Institutional Independence
    • Staff
    • Fellows and Advisors
    • Network of Experts
    • Supporters
    • News
    • Contact
    • Careers
    • Schwartz Book Award
    • Join Our Email List
  • Support Us

Wendy Cutler on Advancing the U.S.-Korea Economic Relationship

South Korea President Moon Jae-in and U.S. President Donald Trump

U.S. President Donald Trump (R) and South Korean President Moon Jae-in shake hands after signing a trade agreement at a bilateral meeting in New York on September 24, 2018, a day before the start of the General Debate of the 73rd session of the General Assembly. (Nicholas Kamm/AFP/Getty Images)


Nicholas Kamm/AFP/Getty Images
January 23rd, 2019 by Matt Schiavenza

Last year, the United States and South Korea agreed to several key amendments to the U.S.-Korea Free Trade Agreement (KORUS), a breakthrough in the crucial economic relationship between the two countries. In a new issue paper published Wednesday by the Asia Society Policy Institute, Wendy Cutler, Asia Society Policy Institute vice president and veteran trade negotiator, and Hyemin Lee, visiting professor at the Graduate School of International Studies at Seoul National University, recommend a series of actions both countries could take to strengthen economic ties. The issue paper can be downloaded here.

Cutler discussed the report in a Q&A with Asia Society's Matt Schiavenza.


What makes the issue paper so timely?

The amendments to KORUS just went into effect at the end of 2018. Now that we’re starting a new year, it’s the perfect time to figure out how to expand our relationship.

The original KORUS agreement was negotiated by the Bush administration, then re-negotiated by the Obama administration, and now amended by the Trump administration. But I believe we’re at the point now where KORUS is as good as it’s going to get. For the first time in a long time, our trade relations with Korea seem to be on a steady path, so this is an opportune time for both countries to look at how they can strengthen their economic relationship and work on issues that go beyond the KORUS obligations.

And that’s what we tried to do in this issue paper: We put forward 19 suggestions of areas for future work, in the areas of trade and investment; digital and advanced technologies; energy; infrastructure; and women's economic empowerment.

What do the latest KORUS amendments do?

When President Trump came into office, he complained that KORUS was one of the worst trade deals ever negotiated. As a result, he directed his negotiators to improve the agreement, and that’s exactly what they sought to do. At the end of the day, however, the changes they actually made to KORUS were pretty modest, focusing mainly on improving market access for U.S. exports of autos and auto parts while also addressing a number of problem issues in the customs, pharmaceuticals, and other areas.

Overall, the amendments were limited. But nevertheless, the president felt that the agreement had been sufficiently improved and was quite praiseworthy of the amended agreement.

Do you think subsequent U.S. presidential administrations will want to re-negotiate KORUS? Or do you think it’ll stay more or less as it is?

I don't see that happening. But I do see opportunities for both countries to work together to further strengthen their economic relationship.

You discuss energy at length in the paper. What are the particular opportunities you see with South Korea and the United States to work together in this area?

Energy is an interesting area. South Korea is a net importer of energy, and the U.S. is now a net exporter of natural gas, so there’s an important opportunity to forge closer ties in this sector.

One of the recommendations in the paper is that the U.S. and Korea build the import and export infrastructure required for liquid natural gas (LNG) so more U.S. LNG exports to Korea can take place. That would not only strengthen the relationship in the energy sector but also bring down the bilateral trade deficit, which has been of concern to the administration with respect to Korea and with other countries.

One suggestion you make in the paper is that Korea joins the U.S. regarding trade concerns with China. Why has Seoul been more reticent than Washington in pushing China in that concern?

Korea, like a number of other countries, feels like it’s caught in the middle of this dispute with the two largest economies in the world. China is Korea’s largest trading partner and the United States is close behind, so it's very dependent on both markets. Like others, Korea has tried to walk a fine line and avoid taking sides.

That said, WTO rules do not sufficiently address the types of challenges, new practices, and policies China has pursued in recent years, including state-owned enterprises, industrial subsidies, and forced technology transfer.

The paper recommends that Korea support the work of the U.S., the European Union, and Japan on these issues since its companies are also feeling the effects of such practices and policies. Furthermore, as a country dependent on exports, Korea has benefitted from a strong multilateral trading system. It should work actively with others to update and improve the rules.

An interesting fact presented in your paper is that female labor participation in Korea is actually somewhat low. What can the two countries do together to improve female representation in the workplace in Korea?

This is an area where both sides could benefit from working together. It’s interesting that even though Korea’s female participation in the labor force is relatively low among OECD countries, when it comes to its maternity and child care policies, it’s pretty advanced — a lot more advanced than the U.S.

In short, both sides don’t have it completely right on women’s workforce issues, and by working together and exchanging experiences, and convening experts, I think both sides could benefit from learning about each other's successes and failures.

Related Report

  • Donald Trump and Moon Jae-in at the 2018 G20 Summit
    report

    Advancing the U.S.-Korea Economic Agenda

    Issue paper highlighting areas for closer economic cooperation between the U.S. and South Korea.
About
  • Mission & History
  • Our People
  • Become a Member
  • Career Opportunities
  • Corporate Involvement
visit us
  • Hong Kong
  • New York
  • Texas
global network
  • Australia
  • France
  • India
  • Japan
  • Korea
  • Northern California
  • Philippines
  • Southern California
  • Switzerland
  • Washington, D.C.
resources
  • Arts
  • Asia Society Magazine
  • ChinaFile
  • Current Affairs
  • Education
  • For Kids
  • Policy
  • Video
shop
  • AsiaStore
initiatives
  • Arts & Museum Summit
  • Asia 21 Young Leaders
  • Asia Arts Game Changer Awards
  • Asia Game Changer Awards
  • Asia Society Museum: The Asia Arts & Museum Network
  • Asia Society Policy Institute
  • Asian Women Empowered
  • Center for Global Education
  • Center on U.S.-China Relations
  • China Learning Initiatives
  • Coal + Ice
  • Creative Voices of Muslim Asia
  • Global Cities Education Network
  • Global Talent Initiatives
  • U.S.-Asia Entertainment Summit
  • U.S.-China Dialogue
  • U.S.-China Museum Summit
Connect
Email Signup For the media
Asia Society logo
©2022 Asia Society | Privacy Statement | Accessibility | Terms & Conditions | Sitemap | Contact

Asia Society takes no institutional position on policy issues and has no affiliation with any government.
The views expressed by Asia Society staff, fellows, experts, report authors, program speakers, board members, and other affiliates are solely their own. Learn more.

 

 

  • Visit Us
  • Hong Kong
  • New York
  • Texas
  • Global Network
  • Australia
  • France
  • India
  • Japan
  • Korea
  • Northern California
  • Philippines
  • Southern California
  • Switzerland
  • Washington, DC