United States and South Korea to revise trade pact with currency side…

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The president said in a tweet Wednesday, the country's trade representative announced a great deal for American and Korean workers.

USA exports to Korea declined 7.8 percent ($3.7 billion) and imports from Korea increasing 13.1 percent ($8.1 billion) by the end of KORUS' fifth year.

These included agreeing to a hard quota on steel exports to the USA - reducing them to 30% below current levels to 2.7 million tons - and a 20-year extension of the current 25% U.S. tariff on Korean-made pickup trucks.

Trump has slammed existing trade agreements with several countries, regularly singling out the six-year-old trade deal with South Korea, known as Korus. Korea has always been an important trading partner for USA agriculture and now ranks as our sixth-highest value market.

The U.S. has also convinced South Korea to accept a side deal banning currency market interventions that would weaken the won - the first agreement of its kind that America has negotiated.

The agreement came as the United States renegotiates the North American Free Trade Agreement with Canada and Mexico, and imposed tariffs that have roiled financial markets.

The deal was hailed by the officials as innovative and visionary and one that may inform future negotiations as they arise.

The United States this month began imposing the steel tariffs, saying imports jeopardized US national security.

"But the result that South Korea would be exempted means that the United States considers South Korea as its main ally and we believe that it would pave the way for good results in future negotiations", the Korea Iron & Steel Association said in a statement.

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The nations have also agreed on terms for a country exemption for the Republic of Korea from tariffs imposed on steel imports under Section 232 of the Trade Expansion Act of 1962 pursuant to Presidential Proclamation 9705, as amended.

The agreement will limit South Korean steel exports to the United States.

Under the agreement in principle announced Tuesday, South Korea will be exempt from the 25 percent steel tariff in exchange for agreeing to cut the amount of steel it sends to the United States by about 30 percent.

Under the revamped deal, Seoul has agreed to double to 50,000 the number of cars each USA carmaker can sell in the Asian nation without meeting local safety standards, said the officials, who spoke on condition of anonymity.

"It's also about the US penetrating South Korea's automobile markets".

Officials in Seoul on Monday had already disclosed much of what the White House described Tuesday as the "historic" first-ever renegotiation of any trade agreement with the United States.

In response to new US tariffs on aluminum and steel, the two countries negotiated a compromise on steel tariffs. The United States is the largest supplier of beef to Korea and trails only the European Union as the second-largest pork supplier. No US automaker sold more than 11,000 cars in South Korea past year. "And we obviously would want to be kept abreast and in the loop as to the changes that are going to be made and as to our consideration as to how it will affect our districts".

In addition, both sides were working on a currency agreement dealing with currency practices, which will be finalized by robot provision that will prohibit a competitive currency devaluation and ensure transparency and accountability of monetary policy, said the officials.

Officials said the revised deal widened U.S. access to South Korea's vehicle market while providing American manufacturers protection from South Korean imports.

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