Korea and the US to pursue 'July Package Agreement' for tariff elimination... "Proceeding calmly without haste"

Washington Korea-US 2+2 Trade Consultation Results

Choi Sang-mok "Will conduct calm and orderly consultations"

Korea-US package agreement likely to be reached after the June 3 presidential election

Korea and the United States have agreed to pursue a 'package agreement' related to the elimination of US tariffs on Korea and industrial cooperation between the two countries by early July, after Korea's next presidential election (June 3).

The two countries reached this agreement during the 2+2 trade consultation held in Washington DC on the 24th (local time), attended by Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, Ahn Deok-geun, Minister of Trade, Industry and Energy, Scott Besant, Secretary of the Treasury, and Jamieson Greer, USTR.

Deputy Prime Minister Choi stated in a briefing that "Our side will prepare a 'July Package' aimed at eliminating tariffs by July 8, when the US reciprocal tariff suspension ends, and there was a consensus (between the two sides) to discuss four areas of interest: tariff and non-tariff measures, economic security, investment cooperation, and currency (exchange rate) policy."

Deputy Prime Minister Choi further explained, "The significance of this consultation lies in the shared understanding between the two countries for calm and orderly consultations without haste."

Deputy Prime Minister Choi also stated, "Our side explained the various considerations for future consultations, such as Korea's political schedule, trade-related laws, and the need for cooperation with the National Assembly, and requested the US side's understanding."

As a result, a comprehensive agreement on tariff elimination and industrial cooperation between Korea and the US is likely to be reached between Korea's new government, which will be inaugurated after the June 3 presidential election, and the Trump administration.

The two countries also plan to hold technical level consultations between the Ministry of Trade, Industry and Energy and the USTR soon, and to have additional high-level consultations with Representative Greer, who will visit Korea to attend the APEC Trade Ministers' Meeting, which will be held for two days starting from the 15th of next month.

Additionally, it was agreed to discuss currency policy separately between Korea's Ministry of Economy and Finance and the US Department of the Treasury. Deputy Prime Minister Choi reported that working-level consultations are expected soon.

Deputy Prime Minister Choi said, "Through today's 2+2 meeting, which is the starting point of the consultations, we have narrowed down the scope of the consultations and formed a consensus on the schedule, establishing the basic framework for the consultations."

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com