Head of Trade Headquarters Demands Start of Steel Negotiations with US... On US-Japan Consultative Body, Says "KORUS FTA is Stronger"

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[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] Yeo Han-gu, head of the Trade Negotiation Headquarters at the Ministry of Trade, Industry and Energy, announced on the 22nd that he requested the U.S. side to promptly start negotiations to lift restrictions on Korean steel exports. In response to concerns that the level of Korea-U.S. cooperation might be inferior to the U.S.-Japan alliance, which is strengthening close ties such as the establishment of the 'U.S.-Japan Trade Consultative Body,' he emphasized that "this is not true."

On the same day, Yeo held a briefing on the results of the Korea-U.S. trade ministers' meeting at the Government Complex Sejong. Earlier, during Katherine Tai, U.S. Trade Representative (USTR)'s visit to Korea, Yeo held a trade ministers' meeting with Representative Tai on the occasion of the '6th Korea-U.S. Free Trade Agreement (FTA) Joint Committee' on the 19th.

Yeo stated, "Recently, the U.S. has concluded or initiated negotiations with the European Union (EU) and Japan regarding steel export restrictions," and added, "I strongly conveyed the point that negotiations should also be reopened with our country, a friendly nation competing in the U.S. market alongside the EU and Japan." He particularly emphasized that "there is high demand for Korean high-grade steel products in the U.S., and Korean manufacturing companies' investments in the U.S. are rapidly increasing," repeatedly requesting the prompt start of negotiations.

The U.S. has applied a 25% tariff on steel from the EU and Japan for the past four years, while allowing duty-free exports of Korean steel only within a quota of 70% of the average export volume during the previous three years (2015?2017). This is based on Section 232 of the Trade Expansion Act, which permits emergency import restrictions or high tariffs if imported products are deemed a threat to national security. Recently, the U.S. agreed with the EU to lift tariffs imposed on EU steel.

When asked about the specific timing for starting negotiations, Yeo replied, "It is difficult to predict the timing at this point," adding, "Since the matter involves both USTR and the Department of Commerce, we will operate ministerial consultative bodies and conduct support activities targeting the U.S. Congress and opinion leaders to do our best to ensure negotiations can begin as soon as possible."

They also agreed to continue discussions on new trade issues such as the recent global supply chain restructuring and the U.S. Indo-Pacific economic framework.

Yeo said, "We will strengthen Korea-U.S. trade cooperation to restore the resilience and stability of supply chains, which have recently become a stumbling block to global economic recovery, and to address digital economy, carbon reduction, and climate change together in response to global challenges," explaining, "Currently, various committees under the Korea-U.S. FTA discuss traditional issues such as goods trade, so we agreed to approach these newly through enhanced consultation channels between the Trade Negotiation Headquarters and USTR."

Regarding concerns that Korea-U.S. cooperation might be relatively weaker amid the U.S. and Japan’s closer ties such as the establishment of the 'U.S.-Japan Trade Consultative Body,' he responded, "That is completely untrue." He explained, "Korea and the U.S. established a high-level, advanced consultation channel about 10 years ago through the Korea-U.S. FTA, whereas the U.S. and Japan do not have an FTA channel, so they created a trade consultative body," and added, "it is inaccurate to say that the cooperation level appears lower than the U.S.-Japan trade consultative body, as we have created an enhanced consultative system to discuss new trade agendas based on the Korea-U.S. FTA."

Regarding the U.S.'s strengthened stance on China, he said, "I had very candid discussions with Representative Tai, and there was no atmosphere of pressure as the media feared," adding, "The focus of discussions was on Korea-U.S. cooperation on various trade agendas in the Asia-Pacific region and jointly contributing to the establishment of a new global trade order."

Additionally, Yeo reiterated the government’s concerns during the meeting with Representative Tai about the U.S. Department of Commerce’s semiconductor data requests to Korean companies and expressed hope that such measures would not recur. He also pointed out that the U.S. Congress’s electric vehicle incentive support bill might discriminate against foreign companies.

Furthermore, he requested cooperation from the U.S. to extend the stay period for Korean company expatriates in the U.S. from the current 3 years to 5 years to align with visa validity periods, and to assist in the issuance process of certificates of origin related to aircraft parts.

This content was produced with the assistance of AI translation services.