Focusing on Six Key Trade Issues: Balanced Trade, Non-Tariff Measures, Economic Security, and More
Minister Andukgeun: "Requested Full Tariff Exemption Again... Will Continue Negotiations with National Interest as Top Priority"
Andukgeun, Minister of Trade, Industry and Energy, held a meeting with reporters on the 16th at Jeju International Convention Center, the venue for the APEC Trade Ministers' Meeting. Photo by Ministry of Trade, Industry and Energy
The ongoing "July Package" tariff negotiations between South Korea and the United States have been specified around six key trade issues: balanced trade, non-tariff measures, economic security, digital trade, rules of origin, and commercial considerations. Both sides are scheduled to hold the second round of technical consultations next week and will officially begin working-level negotiations.
On May 16, Andukgeun, Minister of Trade, Industry and Energy, held a press briefing at the Jeju International Convention Center, the venue for the APEC Trade Ministers' Meeting. He stated, "I met with Jamison Greer, representative of the United States Trade Representative (USTR), and discussed tariff-related measures," adding, "We coordinated a detailed negotiation schedule to ensure that an agreement can be reached by the de facto deadline of July 8."
The working-level consultations will be led by the Director General for Trade Policy, with representatives from relevant ministries such as the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Science and ICT, and the Ministry of Economy and Finance participating according to their areas of responsibility. They will soon visit the United States to hold the second round of technical consultations with their U.S. counterparts.
Regarding specific items within the six agenda topics, Minister Andukgeun explained, "In digital trade, issues such as the provision of services like Google Maps may be included. For non-tariff measures, agricultural quarantine issues could be part of the discussion." He further clarified, "Although rules of origin and commercial considerations are not currently direct points of contention between Korea and the United States, they are included according to the standard negotiation framework set by the U.S."
On industrial cooperation with the United States, he said, "Shipbuilding, energy, and semiconductors are being discussed within a separate industrial cooperation framework, not as part of the exchange conditions for tariff negotiations. Our basic stance is to address tariff issues through technical consultations, while pursuing industrial cooperation through strategic partnerships in parallel."
Regarding the shipbuilding industry, he explained, "The United States is approaching the shipbuilding sector from a military security perspective, and related discussions are underway under the White House National Security Council (NSC). The Ministry of Trade, Industry and Energy is handling negotiations on commercial vessels, while the Ministry of National Defense is responsible for naval vessels."
When asked whether industrial cooperation and tariff negotiations are linked, Minister Andukgeun drew a clear line, stating, "Although the discussions are proceeding in parallel, we refrain from making them conditional on each other." He added, "If the perception arises that shipbuilding cooperation is directly tied to tariff elimination, it could actually hinder progress. We aim to facilitate tariff resolution naturally within the broader structure of cooperation with the United States."
Regarding the possibility of extending the tariff suspension if the July 8 deadline is missed, Minister Andukgeun said, "The possibility remains open, but the government's policy is to meet the deadline as much as possible. If an agreement is not reached by early July, the 25% reciprocal tariffs could be reinstated, so the United States also prefers to reach a deal within the deadline."
Addressing the domestic political situation ahead of the presidential election, Minister Andukgeun stated, "Trade negotiations are being pursued without disruption in the interest of continuity of state affairs, and we are closely sharing negotiation details with both parties in the National Assembly. We are also preparing to ensure a smooth transition of the negotiations to the new government after the presidential election."
Minister Andukgeun also emphasized, "As a country that has signed an FTA with the United States, we have a deep relationship in trade and investment. I have once again requested the elimination of tariffs on major export items such as automobiles and steel."
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