South Korea and the United States are actively working on a new trade agreement ahead of the end of the “tariff pause,” which will last until July 8, 2019

Chas Pravdy - 25 April 2025 05:12

This decision was the outcome of high-level negotiations held on Thursday and aimed to resolve existing trade disagreements as well as create conditions for further economic cooperation between the two countries. Sources from the Yonhap agency reported that the responsible parties agreed to jointly focus on preparing a "package" deal that will cover issues related to American tariffs and other areas of collaboration. South Korea’s Finance Minister Choi San-mok confirmed in a press statement that the agreement should be signed as soon as possible, and definitely before July 8. This date marks the final deadline for ending the 90-day tariff pause imposed by U.S. President Donald Trump to ease tensions in bilateral trade relations. According to the senior official, negotiations are being conducted intensively across several key areas, specifically in four main categories: tariff and non-tariff measures, economic security issues, investment cooperation, and currency policy. As part of the agreement, the negotiation process will be accelerated: prior to the July deadline, work at the ministerial level between South Korea’s Ministry of Industry and the U.S. Office of the Trade Representative is planned to commence. Additionally, during a high-level visit scheduled as part of the Asia-Pacific Economic Cooperation (APEC) forum, U.S. Trade Representative Robert Lighthizer will visit South Korea for consultations with government leaders during ministerial negotiations. Also noteworthy is a positive statement from Tokyo and Washington emphasizing their intent to reduce trade tensions. This was articulated during a "two-plus-two" meeting between the finance and industry ministers of both countries at the U.S. Treasury Department, which lasted nearly 85 minutes. The main outcome of this meeting was defined as coordinated efforts to create a roadmap and clear framework for future negotiations. Choi San-mok highlighted that the agreed-upon deal is an important step towards stabilizing bilateral trade relations. He stated that both sides are committed to actively and efficiently working on a package of measures designed to satisfy the interests of both nations and significantly reduce trade conflicts. This represents a first step within a broader framework of trade agreements, especially given the increasing pressure from the global economy and the instability of global supply chains. According to officials, this week’s negotiations allowed for the identification of clear objectives and a comprehensive approach to upcoming talks. They noted that these discussions differed from previous, often chaotic and insufficiently structured dialogues, emphasizing that the current focus is on forming a stable and transparent strategy. This approach is expected to facilitate quicker and more coordinated resolution of trade issues, particularly concerning tariffs, which have previously been a source of contention. The substantive part of the negotiations is mainly centered on overcoming trade barriers, preventing trade wars, and supporting stability in the investment sphere. Recently, the Trump administration began implementing reciprocal tariffs on imports from several countries, including South Korea. In April, it was announced that 25% tariffs would be imposed as part of the "trade conflict," but these measures were later temporarily suspended, allowing both sides to return to dialogue. Further contacts are expected to focus on detailed discussions of the technical aspects of the agreement and preparations for signing the documents. Official representatives indicated that stability and mutual understanding in bilateral relations are priorities that will help reduce risks and foster a new level of cooperation between South Korea and the United States, considering increasing global economic competition and the desire to create more favorable conditions for business and investors on both sides.

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