Washington: A working-level South Korean trade delegation is currently visiting the United States to discuss the specifics of a framework trade deal reached between the two nations in late July. The talks are anticipated to address the investment package proposed by Korea and issues related to non-tariff trade measures, according to Seoul's trade officials.
According to Yonhap News Agency, the delegates are meeting with officials from the U.S. Trade Representative's office and the Commerce Department. The trade agreement, reached on July 30, involved the Trump administration agreeing to lower its reciprocal tariff rate for South Korea to 15 percent from an initially proposed 25 percent and to cut tariffs on Korean cars to 15 percent from the current 25 percent. In return, South Korea pledged to invest $350 billion in the U.S. for collaboration in industries such as shipbuilding, semiconductors, and batteries, alongside agreeing to purchase $100 billion worth of American energy products.
The ongoing negotiations aim to resolve differences over the proposed investment's details, including its composition, financing methods, and profit-sharing arrangements, as well as non-tariff trade measures. Seoul officials have indicated that the planned investment will primarily consist of loans and credit guarantees, while the U.S. is demanding direct investment. The U.S. is reportedly leveraging the yet-to-be-implemented reduced auto tariffs to pressure Korea to act on its investment plan.
Last week, South Korea's Ministry of Trade, Industry and Energy submitted a record-high budget proposal of 13.88 trillion won ($10 billion) for the next year, allocating 1.9 trillion won for financing industrial cooperation projects with the U.S. The Trump administration is also reportedly urging Korea to address "non-tariff trade barriers" in the agro-livestock and digital sectors.
Under the trade deal, Seoul agreed to enhance cooperation with the U.S. regarding sanitary and phytosanitary procedures for American agricultural products. Korea's agriculture ministry plans to establish a U.S. desk under the Animal and Plant Quarantine Agency to improve communication on these matters.
The talks are also expected to address other trade barrier issues not covered in the framework agreement, such as proposed regulations on online platforms, restrictions on the export of high-precision map data, and an import ban on U.S. beef from cattle aged 30 months or older.
During a trade strategy meeting, Trade Minister Yeo Han-koo emphasized the government's commitment to minimizing the impact of U.S. tariffs on Korean companies and safeguarding national interests in sensitive trade areas.
Furthermore, the Seoul delegation expressed concerns over the recent arrests of over 300 Korean nationals at a battery plant construction site in Georgia, urging U.S. authorities to resolve visa issues to ensure a stable investment environment for Korean companies. On Monday, Korean Industry Minister Kim Jung-kwan conveyed "strong" regret to his U.S. counterpart, Howard Lutnick, regarding the situation.