Government Briefs on Results of Korea-US 2+2 Trade Consultations
Choi Sangmok: "Established Overall Framework for Negotiations"
Ahn Dukgeun: "US Responds Positively to Shipbuilding Cooperation"
No Discussion on Korea-US FTA Revision or Defense Cost-Sharing
Aiming for the removal of tariffs imposed by the United States, the government has decided to prepare a 'July Package' before the mutual tariff suspension deadline of July 8. The plan is to specifically define the scope and framework for negotiations on the issues raised by the United States and to derive ways for bilateral cooperation. The government stated that it had "made a very good start" and announced that additional high-level consultations with the United States would take place domestically next month.
Choi Sangmok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, and Ahn Dukgeun, Minister of Trade, Industry and Energy, are holding a joint briefing on the Korea-US 2+2 trade consultations on the 24th (local time) at the Embassy of the Republic of Korea in Washington D.C., USA. Ministry of Economy and Finance
Choi Sangmok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, said during a briefing on the results of the "Korea-US 2+2 Trade Consultations" held at the Embassy of the Republic of Korea in Washington D.C. on the 24th (local time), "There was a consensus with the United States to prepare a July Package with the goal of abolishing tariffs before the mutual tariff suspension ends on July 8."
The July Package refers to setting the scope, framework, and schedule for how to negotiate various non-tariff issues and digital matters raised by the United States before the tariff suspension deadline. The two countries agreed to hold a working-level meeting next week to define the specific areas for negotiation, after which a task force will be established to finalize the details. Discussions on revising the Korea-US Free Trade Agreement (FTA) or defense cost-sharing were not included.
Deputy Prime Minister Choi explained, "Since the suspension is in place until July 8, we have established an overall framework for negotiations targeting that date." He also said, "A working-level meeting will soon be held between the Ministry of Trade, Industry and Energy and the US Trade Representative (USTR)," adding, "We also plan to hold additional high-level consultations with USTR Representative Jamison Greer, who will visit Korea next month to attend the Asia-Pacific Economic Cooperation (APEC) Trade Ministers' Meeting."
The government and the United States have reached a consensus to focus discussions on four key areas: ▲tariff and non-tariff measures ▲economic security ▲investment cooperation ▲exchange rates (monetary policy). Regarding exchange rate policy, it was agreed that the Ministry of Economy and Finance and the US Department of the Treasury would hold separate discussions at the request of the US Treasury. Deputy Prime Minister Choi added, "We expect a working-level meeting on this matter to take place soon."
Regarding the US demand for a balanced trade account, the government explained that it had elicited a positive response from the US side through cooperation in the shipbuilding industry. Ahn Dukgeun, Minister of Trade, Industry and Energy, who attended the briefing, said, "We made a very good start today." He also emphasized, "Cooperation in the shipbuilding industry is the most important area for future cooperation between the two countries," adding, "We presented our vision, including large-scale investments by domestic companies, and the response was very positive."
During the consultations, the government presented its willingness and vision for cooperation on key US interests such as trade and investment, shipbuilding, and energy, while also expressing concerns that mutual and item-specific tariffs could have a negative impact on economic cooperation between the two countries. Deputy Prime Minister Choi stated, "We conveyed the need for exemptions and exceptions to the tariffs imposed on Korea," and added, "In particular, we focused on the automotive sector, which would have the most negative impact on our economy."
Choi Sangmok, Deputy Prime Minister and Minister of Economy and Finance, is holding a joint briefing on the Korea-US 2+2 trade consultation with Ahn Dukgeun, Minister of Trade, Industry and Energy, on the 24th (local time) at the Korean Embassy in Washington D.C., USA. Ministry of Economy and Finance
The government also explained that there are several considerations for future negotiations, including Korea's political schedule with an early presidential election on June 3, relevant trade laws, and the need for cooperation with the National Assembly, and requested understanding from the US side. Deputy Prime Minister Choi said, "There are matters within the executive branch's authority and others that require legislative approval, so we explained to the United States that these factors must be considered." He also mentioned, "We believe it is desirable to proceed with the support of the National Assembly through communication and are planning accordingly."
Deputy Prime Minister Choi emphasized, "Through today's 2+2 meeting, which marks the starting point of the negotiations, we were able to narrow down the negotiation agenda and establish a consensus on the schedule, thereby setting up the basic framework for the talks." He added, "This is significant because it allowed both countries to share an understanding for calm and orderly negotiations without rushing." Minister Ahn stated, "We will work to maximize the national interest with a calm and sincere attitude."
Earlier that day, the government held the Korea-US 2+2 trade consultations for about one hour and ten minutes at the US Department of the Treasury in Washington D.C. Deputy Prime Minister Choi and Minister Ahn attended from the Korean side, while Scott Besant, US Treasury Secretary, and Representative Greer attended from the US side.
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