Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy explained on the 24th (local time) at the U.S.-South Korea 2+2 trade talks that the deadline for the tariff suspension agreed upon by both countries is July 8, stating, "That is the target for negotiations to be discussed by then."
After the trade talks, Minister Ahn noted during a briefing at the South Korean Embassy in Washington, D.C., regarding questions about the content and form of the "July package," that "various issues, including non-tariff issues and digital sector issues, have been raised. With regard to what range we will discuss by July 8, it has been agreed that the working group to be formed when practical discussions begin next week will finalize each topic."
Minister Ahn explained that Scott Bessent, U.S. Secretary of the Treasury, positively assessed the Korean proposal as a "best proposal (A game)," noting that "it demonstrates significant agreement on the shipbuilding industry cooperation vision, and I believe it aligns well with the U.S. administration's strong desire to enhance shipbuilding industry capabilities."
The delegation explained that discussions about the defense cost-sharing for U.S. troops and the renegotiation of the free trade agreement (FTA) were not conducted during the talks. Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok responded to a question regarding whether there was any mention of defense cost-sharing, saying, "There was absolutely no mention of defense costs in today’s discussions."
Regarding the renegotiation of the U.S.-South Korea FTA, Minister Ahn said, "Nothing has been mentioned. Renegotiating the FTA can take a considerable amount of time. Therefore, we believe that the U.S. side will probably try to avoid this as much as possible."
On currency discussions with the United States, Deputy Prime Minister Choi explained that "Scott Bessent suggested that we discuss it first," but he clarified that it was not in the realm of the U.S. claims regarding "currency manipulation." Choi stated, "There were no discussions about matters like currency manipulation at all," and emphasized that the U.S. side did not intend to raise issues about currency manipulation. He further explained, "Today's 2+2 discussions did not cover currency; instead, we agreed to address it separately."
The following is a question-and-answer session.
― The term ‘July package’ is eye-catching. Did the U.S. side agree to it?
(Ahn Duk-geun, hereinafter referred to as Ahn) "Many topics, including non-tariff issues and digital issues, are being raised. This time, we have defined the scope of what we will discuss by July 8. The specific range of discussions will be finalized by the working group that will be formed when practical discussions begin next week."
― Does this mean it will happen after our presidential election in July?
(Ahn) "There is a period in which reciprocal tariffs are suspended for 90 days. We can see the negotiation goals as discussing matters by then."
― Is it possible to reach an agreement before the 6.3 presidential election?
(Ahn) "We need to look at each issue, but since the entire package needs to be agreed upon, it is difficult to say beforehand that some issues have been settled."
― Before our side announces the results, Minister Bessent made a positive assessment of today’s talks. Can you clarify the context of the U.S. evaluation?
(Ahn) "In our judgment, what was explained this time showed a consensus on the shipbuilding industry cooperation vision. Regarding shipbuilding industry cooperation, we believe the U.S. administration is very eager for substantial investment and talent development from corporations, aligning well with enhancing shipbuilding industry capabilities. However, Minister Bessent mentioned the expression ‘Agreement on Understanding (AOU),’ a term not commonly used in trade. It seems this expression was used to explain the official commencement of the practical discussions scheduled for next week."
― Is today’s agreement not a consensus on tariff negotiations?
(Choi Sang-mok, hereinafter referred to as Choi) "Today’s meeting set the framework for future discussions. It will focus on four areas. The framework for currency will be handled by the finance ministries of both countries, while the others will be managed by the Office of the United States Trade Representative (USTR) and the Ministry of Trade, Industry and Energy through the working groups."
― How do they perceive the connection between trade negotiations and political timelines in the U.S.?
(Choi) "There was no mention of that from the U.S. side. There are several factors, including South Korea's political timeline, the scope of authority of the administration, and the necessity for legislative consent, which should be considered during the negotiation process, and the counterpart agreed to this. If the USTR provides separate documentation, it will be expressed more accurately."
― Was there any discussion about defense costs in today’s meeting?
(Choi) "There was absolutely no mention of defense costs."
― It seems they were satisfied with the shipbuilding industry vision. What specific mentions were there?
(Choi) "The content Secretary Bessent spoke about most specifically was the shipbuilding industry."
(Ahn) "We cannot confirm whether the 'best proposal' really pertains to the shipbuilding industry cooperation plan. However, when discussing trade agreements with other countries, everyone usually speaks of 'balancing the trade surplus;' perhaps the most significant difference we have is 'shipbuilding industry cooperation.' I believe this part was regarded as the most important area for cooperation between our two countries during internal preparations."
― It was mentioned that concrete discussions related to automobiles were made. Was there any response from the U.S.?
(Ahn) "It is difficult to predict regarding automobiles. In the U.S.-South Korea trade relationship, automobiles and auto parts are the most important. We actively explained our significant plans regarding automobiles, which warrant our investment in the U.S., and requested tariff exemptions. The USTR is well aware of this and has indicated a willingness to address it. Ultimately, how to handle the tariff on automobile items will be decided by President Trump, but we will exert our utmost effort at the functional department level."
― Who specifically stated the USTR's intention to handle this effectively?
(Ahn) "Rather than a specific word, they understand well that automobiles are important in trade with Korea, as emphasized by us. They indicated their understanding of this importance during the 2+2 meeting and acknowledged it during bilateral talks, where discussions concluded with, 'We understand, let's move forward with discussions.'"
― Was the renegotiation of the FTA mentioned?
(Ahn) "Nothing has been mentioned. Renegotiating the FTA can take a considerable amount of time. Therefore, we believe that the U.S. side might try to avoid this as much as possible."
― What is the purpose of discussing exchange rate policy?
(Choi) "Specific discussions have not been held. We have been sharing information and discussions closely between our finance ministries. In this context, we agreed to conduct practical discussions regarding exchange rate policy this time. We will explain the specifics once the results are available."
― Were there any mentions of U.S. concerns regarding exchange rates, such as 'currency manipulation'?
(Choi) "There was absolutely no such mention. Secretary Bessent was the one who first suggested discussing the exchange rate separately between our finance ministries."
― Were there any gifts exchanged during the meeting? The 'MAGA' hat became a topic in the U.S.-Japan discussions.
(Choi) "Gifts exchanged were basic items like coins."