South korea says unclear if fta is cause of trade imbalance

You're referring to the recent statement from South Korea's government regarding the trade imbalance between South Korea and the United States.

According to reports, South Korea's Ministry of Trade, Industry and Energy has stated that it is unclear whether the Free Trade Agreement (FTA) between the two countries is the main cause of the trade imbalance. The ministry has emphasized that the trade imbalance is a complex issue that cannot be attributed to a single factor, including the FTA.

The statement comes as a response to concerns raised by the US government and some US lawmakers that the FTA has contributed to the significant trade deficit between the two countries. The US has been pushing South Korea to address the trade imbalance, which has been widening in recent years.

South Korea's ministry has pointed out that the trade imbalance is influenced by various factors, including differences in economic structures, exchange rates, and global market trends. The ministry has also emphasized that South Korea has been taking steps to address the trade imbalance, including increasing imports of US goods and services, and promoting investment in the US.

It's worth noting that the FTA between South Korea and the US, which went into effect in 2012, has been a major driver of trade between the two countries. The agreement has eliminated tariffs on many goods and services, and has increased trade in areas such as autos, electronics, and agriculture.

However, the trade imbalance has continued to widen, with the US running a significant trade deficit with South Korea. In 2020, the US trade deficit with South Korea reached a record high of $27.7 billion.

The South Korean government's statement highlights the complexity of the trade imbalance issue and the need for a comprehensive approach to address it. It also underscores the importance of continued dialogue and cooperation between the two countries to find solutions that benefit both economies.