Trade chief vows to protect Korea's interests through consultations with US over USTR probe
Trade Minister Yeo Han-koo speaks during a meeting with medium-sized enterprises (SMEs) facing difficulties in exports amid the Middle East tensions at the Korea Trade Insurance Corporation in Seoul, Wednesday. Yonhap
Korea's top trade negotiator vowed Thursday continued efforts to safeguard Seoul's trade interests, after Washington announced a trade probe into 16 economies to uncover "unfair" trade practices.
Trade Minister Yeo Han-koo made such a remark in a press briefing held after the office of the U.S. Trade Representative (USTR) announced an investigation into Korea, China, Japan and 13 other economies under Section 301 of the 1974 Trade Act to identify "unfair" trade practices related to "structural" excess capacity and production.
"The government will closely consult with the U.S. side so as to not harm the balance of profits secured through the Korea-U.S. tariff agreement and secure treatment no less favorable than that granted to other major countries in the course of the U.S. inquiry," Yeo said.
The minister said the USTR office has officially notified the opening of a probe to the Korean government, explaining that Washington's move appears to be aimed at restoring trade-related measures it had imposed on partners before the U.S. Supreme Court struck down U.S. President Donald Trump's "reciprocal" tariffs.
Korea had faced 15 percent reciprocal duties before last month's ruling. It currently faces a 10 percent global tariff that was imposed by Washington to replace the reciprocal duties.
"The U.S. investigation under Section 301 is a structural probe targeting a lot of countries, not only Korea," Yeo said, noting that the Seoul government has continuously conveyed to Washington that Korea's trade surplus with the United States is attributable to many Korean firms investing in the American manufacturing industries.
Regarding other pending trade issues with the U.S., such as Seoul's probe into a massive data leak incident involving U.S.-listed e-commerce firm Coupang, Yeo said the latest USTR investigation is unrelated to the issue or other trade barriers.
"But we need to closely manage issues involving digital regulations that can potentially evolve into trade conflict," he said, noting the USTR may open additional trade investigations in the future.