Korea to hold working-level trade talks with US this week, leveraging industrial cooperation

Minister of Trade, Industry and Energy Ahn Duk-geun speaks during a press conference following his meeting with U.S. Trade Representative Jamieson Greer at the International Convention Center, Friday. Courtesy of Ministry of Trade, Industry and Energy

Korea and the United States agreed to hold another round of working-level trade discussions this week, focusing on six areas, Seoul's trade ministry said. The six areas are trade balance, non-tariff measures, economic security, digital trade, rules of origin and commercial considerations.

The agreement came from a meeting between Industry Minister Ahn Duk-geun and U.S. Trade Representative (USTR) Jamieson Greer on Jeju Island on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade (MRT) Meeting, which concluded its two-day gathering on Friday.

The meeting followed last month's high-level consultation, during which the two sides agreed to pursue a package deal addressing U.S. tariffs and economic cooperation by July 8.

"The full-fledged technical consultations have effectively begun in earnest on the occasion of this APEC meeting," Ahn said during a press conference following the meeting.

He added that Seoul will form a delegation for the consultations, comprising officials from relevant government bodies, including the ministries of Economy and Finance, Science and ICT and Agriculture, Food and Rural Affairs.

Ahead of the Jeju meeting, there had been speculations that the U.S. would present a list of demands in return for easing tariffs. However, Ahn explained that the six focus areas are a “template” that the U.S. employs in trade negotiations with various countries simultaneously since U.S. President Donald Trump imposed sweeping tariffs.

“We need to see what specific items will actually be brought to the table during the upcoming working-level talks,” the official said. “Issues like agricultural products or Google's request for Korea's map data have been mentioned in Korea, but nothing has been finalized as essential elements for tariff negotiations.”

While adhering to the U.S framework, Korea is set to leverage the industrial partnership to not only reach negotiations for tariff cuts but also “to ensure that the trade relationship between the two countries can be managed more stably.”

“Korea is an ideal partner that can commercially cooperate with the U.S. on a practical level, not just in the shipbuilding industry but also in energy, semiconductors and other advanced industries. And we think this to be our most important asset in consultations with the U.S,” Ahn said.

Ahn said another round of high-level talks is expected next month but shared that a comprehensive package deal might not be possible despite Seoul’s efforts to meet the deadline.

“As (the imposition of Trump’s ‘reciprocal’ tariffs) has been postponed until July 8, we are currently proceeding with negotiations within that timeframe. But in fact, meeting this deadline is quite tight,” he said. "If inevitable, we expect that there might be some adjustments.”

Trade, Industry and Energy Minister Ahn Duk-geun, second from left, holds tariff discussions with U.S. Trade Representative Jamieson Greer, second from right, at the International Convention Center on Jeju Island, Friday. Courtesy of Ministry of Trade, Industry and Energy

The minister noted that he had explained Korea’s current political situation, marked by a leadership vacuum following the impeachment of President Yoon Suk Yeol and the upcoming presidential election scheduled for June 3.

“The U.S. side conveyed its appreciation for our comprehensive effort to prepare (for negotiations), and expressed full understanding that certain delays may be unavoidable due to our situation with the presidential election,” he said.

According to Ahn, he again asked the U.S. to exempt Korea from all tariffs, including 25 percent reciprocal duties, which have been suspended for 90 days.

"During the meeting, we sought to highlight that Korea maintains a bilateral free trade agreement with the U.S. — unlike some other countries — and has expanded trade and investment under that framework," he said.

"We also emphasized that U.S. tariffs on automobile and steel imports have a significant impact on trade relations between the two countries."

While in Jeju, Greer had a series of talks, meeting with Trade Minister Cheong In-kyo and China's Vice Commerce Minister Li Chenggang on Thursday, as well as HD Hyundai Executive Vice Chairman Chung Ki-sun and Hanwha Ocean CEO Kim Hee-cheul on Friday.