Seoul: South Korea will expedite negotiations with the United States to finalize details of a framework trade agreement established in late July, aimed at fostering a competitive environment for the Korean automobile industry in the U.S., trade ministry officials announced on Friday. This development comes as U.S. President Donald Trump signed an executive order earlier in the day to implement a trade agreement with Japan, reducing tariffs on Japanese vehicles to 15 percent.
According to Yonhap News Agency, the announcement has raised concerns among Korean car manufacturers, as South Korea remains in discussions with the Trump administration to resolve differences regarding the bilateral trade framework deal. This deal, initially agreed upon on July 30, includes a commitment from Washington to lower tariffs on Korean cars to 15 percent from the existing 25 percent.
An official from the Ministry of Trade, Industry and Energy stated, "We will closely study the details of the trade agreement between the U.S. and Japan, while engaging in thorough and substantive discussions with the U.S. to safeguard national interests, as well as those of private industries. We understand the concerns of the automobile industry."
Ongoing negotiations focus on bridging gaps over a proposed US$350 billion investment package by South Korea in exchange for tariff reductions. South Korean officials have indicated that the investment will primarily consist of loans and guarantees, while the U.S. is reportedly seeking more direct investment.