Washington (Washington Insider Magazine) – The two trade representatives, U.S. Trade Representative Jamieson Greer and South Korea’s Minister of Trade, Industry and Energy Ahn Dukgeun, met on Friday to express mutual agreement about accelerating their trade relationship balance, according to Greer’s office statement.
The discussions, described as “productive,” set the stage for technical-level negotiations next week, signaling a potential shift in trade terms between the two allies.
The United States and South Korea established through Washington trade negotiations on Thursday that they would build trade package negotiations to eliminate prospects of a 25% U.S. tariff increase against Seoul. The duties charged by the United States to South Korea amount to 10% because partnership status exists between the two nations.
On April 8, U.S. President Donald Trump announced a 90-day pause on what he called “reciprocal” tariffs, which would end in early July.
U.S. Treasury Secretary Scott Bessent said both countries had a “very successful” meeting.
“We may be moving faster than I thought, and we will be talking technical terms as early as next week,”
He told reporters.
The talks between Bessent and Jamieson Greer from U.S. Trade Representative brought together South Korean Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun.
The statement from South Korea disclosed its request for complete exemptions from American tariffs while proposing bilateral agreements in shipbuilding and energy fields alongside efforts to reduce the trade deficit.
What’s in the ‘July Package’?
Minister Ahn described a “broad agreement” on negotiation frameworks, with working-level talks set for next week. The scheduled date for finalizing the deal stands at July 8.
“The scope and structure will be clarified soon,”
He said.
South Korea became the second trading partner of the United States to start these negotiations following Japan, thanks to its strategic diplomatic position. Professor Ramon Pacheco Pardo at King’s College London recognized the meaningful gesture of South Korea for its participation while holding interim leadership.
“This also underscores the centrality of South Korea to the global economy and international security matters, particularly in the context of Sino-American competition,”
Pardo said.
Leverage and Stakes of this Trade Talk
South Korean investments in the United States reached a record high of US$21.5 billion in 2019 because the country aimed to invest outside China while avoiding the effects of US-China trade tensions. The technological sector of South Korea operates as a global leadership force that includes semiconductor manufacturing and electric vehicle production. The United States, alongside Seoul has increased collaboration between their respective forces in fields like battery science and electric transportation systems and nuclear power systems.
Statistics from the Office of US Trade Representative show two-way trade reached US$197.1 billion during last year as the United States experienced a US$66 billion deficit. South Korea seems to be acting cautiously regarding its negotiations to trade with the United States.
According to him:
“Seoul recognizes its strategic alliance with Washington while Washington remains the strongest partner so Seoul will take all necessary steps to protect this partnership.“
According to international politics professor Mason Richey from Hankuk University of Foreign Studies in Seoul, the South Korean government follows Japan’s trade negotiation strategy against the United States.
