South Korea and the United States are security allies both threatened by the nuclear-armed North but since taking office US President Donald Trump repeatedly threatened to tear up their free-trade agreement, raising concerns about undermining the economic leg of their alliance.
Seoul has agreed to a quota for steel exports to the US 30 per cent below current sales and accepted extended tariffs on pick-up trucks to secure a revised trade deal with Washington and escape its steel duties, the government admitted today.
South Korea and the United States are security allies both threatened by the nuclear-armed North but since taking office US President Donald Trump repeatedly threatened to tear up their free-trade agreement, raising concerns about undermining the economic leg of their alliance.
The Trump administration instigated talks in July to renegotiate the free-trade treaty, known as KORUS, and the US last week imposed duties on steel imports from multiple countries including China, raising fears of a trade war.
South Korea and the United States have agreed „in principle“ on the revisions of their free-trade agreement (FTA) and steel tariffs, Seoul’s trade minister said today.
The South’s economy is heavily dependent on trade, with the US as its second-biggest partner and Seoul’s trade minister said Monday they had reached agreement on revising the KORUS deal after weeks of negotiations.
Under the pact, Seoul will further open its auto market to US manufacturers, while accepting a 20-year extension until 2041 to a 25 per cent US tariff on Korean pick-up trucks.
