US reaffirms tariff rate no greater for Korea than agreed under bilateral trade deal: minister
Industry Minister Kim Jung-kwan, right, shakes hands with U.S. Commerce Secretary Howard Lutnick during their meeting in Washington, May 8 (local time). Courtesy of Ministry of Trade, Industry and Resources
Industry Minister Kim Jung-kwan said Thursday his U.S. counterpart has reaffirmed that Korea will not face greater tariffs than agreed under the bilateral trade deal between the two countries, following the office of the U.S. Trade Representative's (USTR) recent announcement of the results of the Section 301 probe into imports related to forced labor.
Kim said in a social media post that he held talks with U.S. Commerce Secretary Howard Lutnick via a video call on Wednesday, shortly after the office of the USTR proposed imposing tariffs of 10 percent, or 12.5 percent, on imported goods from 60 economies over their alleged failure to enforce an import ban on goods produced with forced labor.
Korea, China and Japan are among 54 economies that could be subject to the proposed 12.5 percent tariff as a result of the USTR's forced labor probe under Section 301 of the 1974 Trade Act.
"We reviewed the implementation status of the Korea-U.S. tariff agreement finalized last year and reaffirmed our commitment to upholding the deal," Kim wrote.
"In particular, the U.S. side once again confirmed that no tariffs beyond the level agreed under last year's tariff deal will be imposed on Korea," he added, vowing to make efforts to ensure that the balance of interests secured through the bilateral deal is protected.
Under the deal finalized late last year, the U.S. agreed to lower its reciprocal tariffs on Korea to 15 percent from 25 percent in exchange for Seoul's $350 billion investment pledge.
Trade Minister Yeo Han-koo, right, shakes hands with U.S. Trade Representative Jamieson Greer during their meeting in Brussels, June 3 (local time). Courtesy of Ministry of Trade, Industry and Resources
Trade Minister Yeo Han-koo has also urged the U.S. to resolve pending trade issues between the two countries, including the USTR's latest tariff move, within the boundaries of the Seoul-Washington deal, according to the Ministry of Trade, Industry and Resources.
Yeo made the call in a meeting with USTR Jamieson Greer on the sidelines of the OECD Ministerial Council Meeting held in Paris on Wednesday (local time).
"I made it clear that not only the outcomes of the latest Section 301 probe but also other future bilateral trade issues should be addressed within the framework of the Korea-U.S. tariff agreement rather than through the imposition of new tariffs," Yeo said in a press release.
"We will continue to work closely with the U.S. side and respond calmly to the remaining Section 301 procedures to ensure that bilateral trade issues are managed in a stable and constructive manner," Yeo added.
Korea is also subject to a separate USTR investigation into what it calls "unfair" trade practices related to "structural" excess capacity and production, along with China, Japan and 13 other economies.
The U.S. has been carrying out trade investigations to replace country-specific "reciprocal" tariffs that were struck down by the Supreme Court in February.
Section 301 is a legal provision that allows the USTR to investigate unfair foreign trade practices on a country-by-country basis.