Seoul: U.S. Commerce Secretary Howard Lutnick said Thursday that South Korea should either accept a bilateral framework trade deal struck in July, or pay tariffs, amid an impasse in negotiations to work out specifics of the deal. Lutnick made the remarks in a CNBC interview, noting that "there is no flexibility" when it comes to the deal.
According to Yonhap News Agency, under the deal, Washington agreed to lower "reciprocal" tariffs on South Korea to 15 percent from the proposed 25 percent in return for Seoul's commitment to invest US$350 billion in the United States and other pledges. The two sides have been in talks on the makeup of the investment package, profit sharing and other details.
Lutnick highlighted the lack of progress by referencing the visit of South Korean President Lee Jae Myung to Washington for a summit with President Donald Trump on August 25. "The Koreans didn't sign when the president was in ... You remember that he came to the White House. Notice how we didn't talk about trade because he didn't sign the piece of paper," Lutnick recalled.
He further emphasized the urgency of the situation by comparing it to the recent agreement with Japan. "I mean, the devil is in the details. I think they saw the Japanese now, so there's no flexibility. The Japanese signed the contract ... The Koreans either accept that deal or pay the tariffs. Black and white. Pay the tariffs or accept the deal," Lutnick stated.