WASHINGTON — The Trump administration successfully negotiated revisions to the 2011 U.S.-Korea free-trade deal, with the goal of reducing the $23 billion goods deficit.
The agreement, which faces legislative review in both countries, addresses a big imbalance in the automobile trade as Kia and Hyundai exports to the U.S. mushroom, while Ford Motor Co. and General Motors each ship fewer than 10,000 autos a year to Korea.
Here are highlights of the deal that are expected to benefit the Detroit 3:
- U.S. truck tariffs of 25 percent are extended by 20 years, until 2041.
- Korea will double the number of U.S. auto exports allowed entry to 50,000 per manufacturer per year.
- Korea will recognize U.S. safety standards on imported vehicles.
- Korea will recognize U.S. standards for auto parts and reduce labeling requirements for parts.
- Korea will expand the amount of "eco-credits" available to help meet fuel economy and greenhouse gas requirements, and it will ensure that future fuel economy targets take U.S. regulations into account.
U.S. exports of gasoline vehicles will be able to show compliance with Korea's emissions standards using the same tests used for the U.S.
A side agreement will prohibit competitive currency manipulation.
Korean steel exports to the U.S. will be capped at 70 percent of the average annual import volume during the previous three years.
U.S. Trade Representative Robert Lighthizer acknowledged that Detroit automakers won't see exports immediately jump to 50,000 vehicles, but will get well above 25,000, resulting in billions of dollars in additional sales within a few years.