US "Reset baseline for new bilateral agreements"...Will Korea-US FTA become 'tattered'?

Secretary of State Marco Rubio

Revealed in CBS interview

U.S. Secretary of State Marco Rubio said on the 16th (local time) regarding President Donald Trump's announcement to impose reciprocal tariffs on global trading partners starting on the 2nd of next month, "We can reset the baseline and then conclude bilateral agreements with individual countries."

Secretary Rubio made this comment during an interview with CBS's 'Face The Nation' and added, "That's how our trade can become fair." He presented fairness and reciprocity as the 'new baseline' that would form the foundation for new bilateral agreements.

Secretary Rubio said, "There are two things President Trump wants to say," adding, "First, in key industries such as aluminum, steel, semiconductors, and automobile manufacturing, we need to ensure economic incentives to produce in the United States in order to protect these industries and build capacity."

He continued, "The second is global. We will impose the same tariffs on other countries that they impose on the United States," adding, "We will engage in bilateral negotiations with countries around the world for new trade agreements that benefit both sides based on new standards of fairness and reciprocity."

Secretary Rubio pointed to this trade structure as the cause of the emergence of the American Rust Belt (declining industrial areas), saying, "President Trump has been pointing out this problem since the 1980s, before he became a politician," and stated, "This (new trade agreement) will happen."

Rubio's remarks are interpreted to mean that after imposing reciprocal tariffs considering both tariff and non-tariff barriers of U.S. trading partners from the 2nd of next month, the U.S. will establish new trade agreements with its trading partners based on fairness and reciprocity. In this case, it is expected that South Korea, which already has a Free Trade Agreement (FTA) with the United States, will not be an exception.

If Secretary Rubio's comments materialize, it is analyzed that the Korea-US FTA, which was revised once during President Trump's first term, may be significantly revised again, or a completely new agreement may be concluded to replace the Korea-US FTA.

Reporter Song Jong-hyun scream@hankyung.com