Seoul: South Korea and the United States will hold a ministerial-level meeting within this year to discuss bilateral cooperation concerning non-tariff trade barriers. These barriers pertain to areas such as automobile and digital services regulations, as well as issues affecting food and agricultural products, announced the South Korean trade minister.
According to Yonhap News Agency, the two nations released a joint fact sheet on their bilateral trade agreement earlier in the day, indicating a shared commitment to address non-tariff barriers to enhance mutually beneficial trade and investment. A significant development is South Korea's decision to eliminate the 50,000-unit cap on U.S.-made vehicles that meet safety standards, thus allowing them to enter the Korean market without additional modifications.
The fact sheet also highlighted the establishment of a U.S. desk dedicated to handling requests for U.S. horticultural products under Korea's Animal and Plant Quarantine Agency. This move aims to address non-tariff barriers affecting trade in food and agricultural goods.
Further, the commitment between the two countries extends to ensuring that U.S. companies are not subjected to discriminatory laws and policies regarding digital services in South Korea, including network usage fees and online platform regulations. These issues were identified in the annual report by the U.S. Trade Representative (USTR) and have been central to ongoing trade negotiations between Seoul and Washington.
Trade Minister Yeo Han-koo emphasized that these matters would be a focal point of the upcoming meeting between his ministry and the USTR, where they will finalize their strategies to tackle non-tariff barriers. Yeo assured that the government has considered the sensitivities of the Korean agricultural sector and other industries while discussing mutually beneficial trade measures.
In the automotive sector, Yeo mentioned that lifting the 50,000-unit cap on American vehicles would have a limited impact on the domestic industry, given that Korea currently imports fewer than 50,000 cars from the U.S.
Regarding agriculture, Yeo clarified that the creation of a U.S. desk does not imply a reduction in the existing eight-step sanitary and phytosanitary procedures for agricultural imports. Only products that successfully complete these procedures will be allowed entry into the country.
On October 29, the two nations agreed on the specifics of Seoul's $350 billion investment pledge, made in exchange for reduced U.S. tariffs. The investment will include $200 billion in cash installments, capped annually at $20 billion, and an additional $150 billion for bilateral shipbuilding cooperation.
The U.S. has already lowered reciprocal tariffs for Korea from 25 percent to 15 percent as of August 7 and intends to reduce tariffs on Korean cars and lumber to 15 percent as well, according to the trade ministry. Korean pharmaceutical products will face a tariff rate not exceeding 15 percent, while semiconductors will be subject to tariff rates comparable to those applied to competitors like Taiwan.