Lutnick: "Korean Officials Visiting Today for Trade Talks"
Industry Minister to Proceed with Negotiations Despite '2+2 Talks' Cancellation
US Treasury: "Secretary Besant's Schedule Conflict, Meeting to Be Rescheduled"
The 'Korea-US 2+2 Trade Talks,' which were scheduled for the 25th (local time), were abruptly canceled due to a scheduling conflict with US Treasury Secretary Scott Besant. However, the Korean government announced on the 24th that trade negotiations with US Secretary of Commerce Howard Lutnick would proceed as planned.
On this day, Secretary Lutnick stated in an interview with CNBC, "Today, Korean officials will visit my office to discuss trade-related matters."
He added, "Like Europe, Korea is very, very eager to reach a deal," and remarked, "When Korea read the agreement between the United States and Japan, they probably uttered some expletives." He continued, "Since Korea and Japan are wary of each other, one can imagine how Korea felt after seeing Japan's deal concluded."
On this day, Minister of Trade, Industry and Energy Kim Jungkwan and Trade Minister Yeo Hankoo are scheduled to visit the US Department of Commerce in Washington, D.C., to meet with Secretary Lutnick.
Secretary Lutnick's mention of Japan ahead of the Korea-US trade negotiations is interpreted as an acknowledgment that Korea and Japan, whose trade structures are similar, are in a competitive relationship during these talks. In the trade agreement concluded with the United States on the 22nd, Japan lowered the mutual tariff rate from the previous 25% to 15%, and the tariff on automobile items was reduced from 25% to 12.5%, which, when combined with the existing tariff (2.5%), results in a total tariff rate of 15%. If Korea fails to lower its mutual tariff rate of 25% and automobile item tariff of 25% to the levels agreed to by Japan, the domestic finished car industry will inevitably face a disadvantage in the US market.
Previously, the US Treasury Department abruptly canceled the Korea-US 2+2 trade talks, which were originally scheduled for the 25th, just two days before the meeting. The 2+2 talks were to be attended by Secretary Besant and US Trade Representative Jamie Grierson on the US side, and Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol and Minister Yeo on the Korean side. Due to the unilateral cancellation by the US, Deputy Prime Minister Koo, who was preparing to depart for the United States at Incheon International Airport, had to turn back just one hour before his scheduled departure.
There is analysis suggesting that the breakdown of the 2+2 talks reflects US dissatisfaction expressed during unofficial consultations between the two countries regarding Korea's level of market openness and the scale of investment in the United States.
The US Treasury Department explained, "Secretary Besant's bilateral meeting with Korea is being rescheduled due to a scheduling conflict," and added, "The Secretary looks forward to meeting his Korean counterpart soon." This means that, due to overlapping appointments and events, the Korea-US talks were postponed to accommodate higher-priority commitments. Secretary Besant is scheduled to attend the US-China trade negotiations in Stockholm, Sweden, on the 28th and 29th, while his schedule for the 25th, the day the talks with Korea were canceled, has not been disclosed.
The Ministry of Economy and Finance also explained, "Due to Secretary Besant's urgent scheduling conflict, the 2+2 talks scheduled for the 25th could not be held."
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