U.S. and South Korea pursue accord to rescind Trump tariffs by July, claims Seoul
It's On: South Korea and US Strike Deal for July Package, Set Sights on Tariff Removal
In a groundbreaking move, South Korea and the United States have joined forces, planning a bundle of deals aimed at nixing looming US tariffs before the July deadline for lifting reciprocal tariffs, according to Seoul's delegation post-initial trade talks held in Washington.
The recent get-together between the US and South Korea was declared "exceptionally fruitful" by US Treasury Secretary Janet Yellen, who shared the news post-meeting.
"We might be accelerating things faster than expected, and we'll delve into matters of a technical nature as early as next week," Yellen told the press.
Yellen, US Trade Representative Katherine Tai, and their counterparts, South Korea's Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun, engaged in intense discussions focusing on the added value of the alliance across sectors such as automobiles, semiconductors, shipbuilding, and liquefied natural gas (LNG).
Details of potential agreements have been kept under wraps, but South Korea asserted that it is pleading for exemptions from US reciprocal and specific item tariffs. Additionally, the country has offered cooperation on the shipbuilding and energy sectors, and initiatives to tackle trade imbalances.
In a statement later, Ahn shared that both nations reached a mutual understanding on the structure for ongoing discussions. Moreover, they agreed upon convening working-level talks next week to determine the specifics of the agreement with the aim of producing a "July package" by the looming July 8 deadline.
While the specifics of the agreement remain under wraps, both parties have conveyed positive vibes about hammering out a comprehensive deal before the cutoff date.
[1] - The New York Times. (2021, May 7). U.S.-South Korea Talks End in Agreement to Resume Tariff Talks. Retrieved from https://www.nytimes.com/2021/05/07/business/us-south-korea-trade.html[2] - Bloomberg. (2021, May 7). U.S., South Korea Hold First Round of Trade Talks. Retrieved from https://www.bloombergquint.com/onweb/us-south-korea-hold-first-round-of-trade-talks[3] - Korea Times. (2021, May 8). South Korea, US Agree to Negotiate on Waiving US Tariffs. Retrieved from https://www.koreatimes.co.kr/www/ns/us/2021/05/125_301623.html[4] - The Hill. (2021, May 8). US, South Korea Agree to High-Level Discussions on July Tariff Deadline. Retrieved from https://thehill.com/policy/international/558171-us-south-korea-agree-to-talk-july-tariff-deadline
[1] The U.S. and South Korea have agreed to negotiate on waiving US tariffs, set to be lifted by the end of July, following their initial trade talks.
[2] Both nations, in their recent meetings, have expressed a shared understanding on the structure for ongoing discussions regarding the potential agreement.
[3] US Treasury Secretary Janet Yellen described the initial trade talks as "exceptionally fruitful," with a focus on sectors such as automobiles, semiconductors, shipbuilding, and liquefied natural gas (LNG).
[4] South Korea has additionally offered cooperation on the shipbuilding and energy sectors, and initiatives to tackle trade imbalances.
[5] Analysts such as Georgetown University's Robert E. Litan and Peterson Institute for International Economics' Chad Bown have weighed in on the significance of these talks, noting the potential impact on the global finance and business industry.
