By Yena Park and Jihoon Lee
SEJONG, South Korea (Reuters) -South Korea will take into account Japan’s trade agreement with the United States as a reference as it negotiates final details of its own trade deal struck in late July, the finance minister said on Monday.
“There are pros and cons for us. What is positive is that because we know the outcome of Japan’s negotiations, we can negotiate with the U.S. based on it,” Minister Koo Yun-cheol told a press conference.
President Donald Trump signed an executive order implementing Japan’s trade deal last week, but South Korea is yet to reach a written agreement on the deal struck in July between its team led by Koo and the U.S. leader.
The Japanese deal lowering U.S. tariffs on imports of its cars to 15% from 25% has put South Korean automakers, which still face 25%, at a competitive disadvantage.
“We will consult with the U.S. in a way that meets the national interest as much as possible,” Koo said.
South Korea and the U.S. were negotiating on details of a $350 billion investment package included in the deal and Seoul would seek ways to launch various investment projects in the U.S. in an effective manner, he said.
Seoul was also in talks with the U.S. over foreign exchange policy, which will be included when the two sides announce the results after trade negotiations conclude, Koo said.
Last week, Trump’s administration asked the U.S. Supreme Court to swiftly hear a bid to preserve his sweeping tariffs pursued under a 1977 law meant for emergencies, after a lower court invalidated most of the levies that have been central to the Republican president’s economic and trade agenda.
Koo said authorities were taking into account every possible scenario, but said it remained “more pressing than ever” to respond to various external changes, such as tariffs.
He vowed to prepare new strategies by October to respond to fundamental changes in the global trade order.
Referring to a U.S. immigration raid that saw hundreds of Korean workers detained last week at a Hyundai plant under construction in Georgia, Koo said the government would consult with the Trump administration to prevent similar incidents from happening again to companies investing in the United States.
(Reporting by Yena Park, Writing by Jihoon Lee; Editing by Kim Coghill. Ed Davies)
Comments