The United States Trade Representative (USTR) has pointed out 21 non-tariff barriers, including South Korea's digital regulations and pharmaceutical price controls, and our government is responding through the Korea-US FTA consultative bodies. The government plans to prepare specific measures through consultations with relevant ministries and industries regarding the issues raised in the report.
On the 1st, the Ministry of Trade, Industry and Energy stated regarding the issues included in USTR's "2025 National Trade Estimate Report (NTE Report)" that "we have recently explained South Korea's efforts to improve the trade environment to the US side through ministerial and vice-ministerial level visits and working-level channels," and added, "We plan to actively utilize the Korea-US FTA Implementation Committee and working groups to continuously convey our position and respond to major issues such as reciprocal tariffs."
Earlier, after reviewing the contents submitted by US stakeholders during the public comment process, the government submitted its opinion letter in February and explained South Korea's position through face-to-face consultations. The government emphasized that South Korea's level of non-tariff barriers is by no means higher compared to major trading partners and also conveyed the government's various policy efforts to improve the business environment for foreign-invested companies.
USTR evaluated in this report that "South Korea has eliminated tariffs on most goods through the Korea-US FTA and regularly discusses bilateral issues through the Implementation Committee and working groups." However, it pointed out that US companies still face difficulties accessing the market in areas such as digital trade, government procurement, agricultural market access, services, and pharmaceutical pricing.
Specifically, in the digital trade sector, issues were raised regarding data localization requirements, personal information protection regulations, and controls on cloud services. Regarding government procurement, claims were included that domestic product preference policies restrict foreign companies' entry. In the agricultural sector, delays in import procedures and sanitary and quarantine measures for certain items were cited, and in the services sector, entry barriers for foreign financial and legal service firms were identified as problems. Regarding pharmaceutical pricing policies, the report mentioned the lack of transparency in the Health Insurance Review & Assessment Service's price controls and calculation methods.
The Ministry of Trade, Industry and Energy said, "Although the number of issues related to South Korea has slightly increased compared to last year, it is still at a low level compared to the more than 40 cases mentioned annually until 2023," and added, "In a situation where sensitivity to non-tariff measures has increased, including the US suggesting the possibility of imposing reciprocal tariffs, we will conduct a thorough analysis of this report and consult with domestic and international stakeholders to prepare practical countermeasures."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
