Seoul, Sep 9 (IANS) A working-level South Korean trade delegation is currently on a visit to the United States for talks on the details of a framework trade deal reached between the two countries in late July, Seoul’s trade officials said on Tuesday, with the talks expected to cover the investment package proposed by Korea and non-tariff trade measure issues.
The delegates are meeting with officials from the office of the U.S. Trade Representative (USTR) and the Commerce Department, according to the officials, reports Yonhap news agency.
Seoul and Washington reached a trade agreement on July 30, under which the Donald Trump administration agreed to lower its reciprocal tariff rate for South Korea to 15 percent from the initially proposed 25 percent and cut tariffs on Korean cars also to 15 percent from the current 25 per cent.
In return, the Korean government made a pledge to invest a combined $350 billion in the U.S. for cooperation in shipbuilding, semiconductor, battery and other advanced industries, while agreeing to purchase $100 billion worth of American energy products.
The two sides have reportedly been working to bridge their differences over details of the proposed investment, such as its composition, financing methods and profit sharing arrangements, as well as issues related to non-tariff trade measures.
Seoul officials have said the planned investment will mostly comprise loans and credit guarantees, while the U.S. is known to be demanding direct investment.
The U.S. is reportedly pressuring Korea to first take action on its investment plan, using the lowered auto tariffs, which have yet to take effect, as leverage.
Last week, the Ministry of Trade, Industry and Energy submitted a record-high budget proposal of 13.88 trillion won ($10 billion) for next year, allocating 1.9 trillion won for financing industrial cooperation projects with the U.S.
The Trump administration is also said to be pressuring Korea to take steps to resolve what it calls “non-tariff trade barriers” in the agro-livestock and digital sectors.
Under the trade deal, the Seoul government agreed to bolster cooperation with the U.S. regarding its sanitary and phytosanitary procedures (SPS) for American agricultural products.
Last month, Korea’s agriculture minister said her ministry plans to newly set up a U.S. desk under the Animal and Plant Quarantine Agency as part of efforts to strengthen communication with the U.S. on the matter.
The ongoing trade talks between Korea and the U.S. are expected to cover other trade barrier issues not included in the framework agreement, such as Seoul’s proposed regulations on online platforms and restrictions on the export of high-precision map data, as well as an import ban of U.S. beef from cattle aged 30 months or older.
—IANS
na/
